News of an ‘exciting’ LNG development has emerged from Shenzhen in China, where Qatargas has this week delivered its first Q-flex LNG cargo to the People’s Republic of China.

China represents a relatively new market for Qatari LNG and Qatargas made the delivery under sales and purchase agreements that had been signed with the China National Offshore Oil Corporation (CNOOC).

Deliveries to CNOOC under these agreements will be expected to continue for up to 25 years, the company notes.

The cargo was delivered at the Guangdong Dapeng LNG receiving terminal near the major Chinese industrial city of Shenzhen, utilising the
Q-Flex ship Al Ghariya, which departed Ras Laffan Port on 5th October. Al-Ghariya is part of Qatargas’ integrated shipping fleet, which consists of the world’s largest state-of-the-art LNG vessels.

The unloading this week actually represented the second cargo of LNG to be delivered to China from the State of Qatar, though the first spot cargo was delivered from only a conventional sized vessel, in September.

A formal unloading ceremony was held at the Guangdong Dapeng terminal to celebrate the arrival of the first cargo, attended by representatives from both Qatargas and CNOOC.

Mr Faisal M. Al Suwaidi, Chairman and CEO of Qatargas, enthused, “This is truly an exciting development for Qatargas as we start to deliver LNG under our agreement. China represents a new market for Qatari LNG and we are proud to be able to deliver this first cargo safely and on time. Qatargas is very pleased to be playing an increasing role in providing stable energy supplies to China which has just celebrated its 60th anniversary.”

“LNG has a key role to play in helping governments around the world improve the diversity of their energy supplies. We are pleased with this development which will help to meet the growing demand for energy in China.”

Qatargas executed a long term LNG sales & purchase agreement in 2008 with CNOOC to supply two million tonnes per annum (mtpa) of LNG to the People’s Republic of China for a 25 year period. The LNG will be supplied from Train 6 of the Qatargas 3 joint venture between Qatar Petroleum, ConocoPhillips and Mitsui.

Train 6 is anticipated to start producing LNG in 2010. Until then, LNG will be supplied from the Qatargas 2 Company, whose shareholders are Qatar Petroleum, ExxonMobil and Total.