Qatargas extends PLUK deal for five more years

Deal with Petronas’s Atlantic basin-focused LNG trading arm will now run until the end of 2023.

Qatargas has agreed a new five-year LNG sale and purchase agreement (SPA) with Petronas LNG UK Ltd (PLUK), the Doho-based company has confirmed.

Under the terms of the new SPA, Qatargas will deliver LNG to PLUK until December 2023, an extension of its current contract due to expire at the end of 2018.

Qatargas said a total of 1.1mt per annum is secured for a partnership that will now extend to a decade-long supply of LNG to the UK-based entity.

The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Shell which started production in January 2011.

It will be delivered on board Qatargas’ 210,000-cbm Q-Flex LNG vessels to Dragon LNG terminal at Milford Haven, in the UK.

PLUK is Petronas’s Atlantic basin-focused LNG trading subsidiary and is also responsible for securing LNG supplies into Dragon LNG terminal where Petronas owns 50% equity and capacity stake.

Last month Qatargas agreed a new SPA with Centrica, the largest supplier of gas to households in the UK, to deliver up to 2mt of LNG per annum.

Qatargas initially entered into a three-year contract with Centrica to supply LNG to the Isle of Grain Terminal near London from June 2011.

It then entered into a further four-and-a-half-year contract, with the latest five-year contract extending the agreement until December 2023.