Qatargas and OMV sign 5-year LNG agreement

 21 Dec 2017 - 12:25

Qatargas and OMV sign 5-year LNG agreement
LNG vessel Al Samriya

The Peninsula

Qatargas Operating Company Limited (Qatargas) yesterday announced the signing of a new Sale and Purchase Agreement (SPA) with OMV Gas Marketing & Trading GmbH (OMV). Under the terms of the agreement, Qatargas will deliver up to 1.1 million tonnes of Liquefied Natural Gas (LNG) per annum to the Austrian company for five years.

Commenting on the occasion, Saad Sherida Al Kaabi, President and Chief Executive Officer of Qatar Petroleum, and Chairman of the Qatargas Board of Directors, said: “We are very pleased to announce this new deal with OMV – an international, integrated oil and gas company operating from the heart of Europe. OMV provides major European customers and distributors with tailored natural gas solutions, and we look forward to supplying them with reliable Qatari LNG.”

Al Kaabi added: “With this deal, Qatargas has once again demonstrated its ability to capture new opportunities and expand its network of customers in an evolving market.”

On the new SPA, Sheikh Khalid bin Khalifa Al Thani, Chief Executive Officer, Qatargas, said: “Qatargas is delighted to conclude this new SPA with OMV, and welcome another leading company to our client portfolio. This new deal is testament to our proven ability to supply reliable clean energy to customers in Europe, and to our customers all over the world. Qatargas’ reliability and flexibility are just two of the reasons why we are known as the World’s Premier LNG Company.”

Manfred Leitner, OMV Executive Board member responsible for Downstream, said: “The agreement is in line with OMV’s gas strategy to ensure security of supply for Europe and it supports our efforts to employ our LNG infrastructure including the GATE terminal in Rotterdam. This milestone follows on years of a successful business relationship and we are pleased to now add Qatargas as one of our long-term suppliers of LNG.”

Commencing in January 2019, the SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (Qatargas 4), a joint venture between Qatar Petroleum (70 percent) and Shell (30 percent). The LNG will be delivered to the Gate LNG Terminal in the Netherlands on board Qatargas’ chartered LNG vessels.

Qatargas is the largest producer of LNG in the world with an annual production capacity of 42 million tonnes per annum (MTPA) from its world-class facilities in Ras Laffan Industrial City, Qatar. Since the first production in 1996, Qatargas has successfully delivered cargos to 28 countries and is committed to meeting the world’s demand for safe, reliable and clean energy.