Qatargas, the world’s largest liquefied natural gas (LNG) exporter, has extended its supply relationship with Centrica, the chief supplier of gas to UK households, in the form of a new sale and purchase agreement (SPA).
Under the terms of the new arrangement, which extends upon previous deals between the two companies originally instated in June 2011, Qatargas will deliver up to two million tonnes of LNG each year to the energy and services company until December 2023.
The LNG will be supplied from Qatargas 4, the joint venture between Qatar Petroleum and Shell which has a production capacity of approximately 7.8 million tonnes per year.
Q-Flex and Q-Max LNG vessels chartered by the Middle Eastern corporation will then deliver the LNG to the Isle of Grain Terminal in the UK.
Commenting on the newly-signed deal, Saad Sherida Al-Kaabi, Qatar Petroleum President and CEO, and Chairman of Qatargas Board of Directors, said, “This agreement underscores Qatargas’ reputation as a safe and reliable supplier of LNG. Furthermore, this agreement has the potential to positively contribute to the UK’s energy security for years to come.”