(MENAFN - Qatar News Agency) Qatar Liquefied Gas Company Limited (Qatargas 1) signed on Monday a new long-term LNG Sales and Purchase Agreement (SPA) with Tokyo Electric Power Company, Incorporated (TEPCO).
Under the terms of the agreement, Qatargas 1 will deliver 1.0 million tonnes per annum (MTA) of LNG on a long-term basis starting from 2012.
The agreement was signed by HE Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman of the Board of Qatargas, in the presence of Mr.Takao Arai, Managing Director of TEPCO in a ceremony held here on the occasion, Qatargas 1 said in a press release today .
H.E. Dr. Al-Sada said "This agreement is consistent with the vision of HH the Emir, Sheikh Hamad Bin Khalifa Al-Thani, for the State of Qatar to contribute towards global energy security. As the largest LNG-producing company in the world, Qatargas is committed to providing reliable energy supplies to all four corners of the world. Today s agreement reinforces our strong relationship with one of Qatargas foundation customers and demonstrates our continued long-term commitment to supply LNG to Japan. We are doing all we can to support Japan's continuous requirement for stable energy supplies."
For his part, HE Sheikh Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer said: "This agreement is a further testimony of our long-term reliable commitment to Japan and reinforces Qatargas global reputation as a safe and reliable supplier of LNG. Qatargas relationship with TEPCO goes as far back as 1994 when we signed an agreement with a consortium of Japanese buyers including TEPCO. Today, we are very pleased to add a new chapter to our long and fruitful partnership."
While Mr. Takao Arai, Managing Director, TEPCO, added that "having continuously been provided with the smooth and stable delivery from Qatargas since its first cargo received, we are confident that today s execution of the contract between Qatargas, the world s largest LNG supplier, and TEPCO has further deepened the good relationship between the two companies and will greatly contribute to our future stable procurement of LNG".
This is the first long-term bilateral agreement between TEPCO and Qatargas. Under this new agreement together with existing arrangements, Qatargas will supply approximately 2 million tonnes of LNG to TEPCO in 2012 (i.e. 5% of Qatargas total production capacity).
TEPCO is one of the original eight Japanese buyers who signed a multi-party contract with the Qatargas 1 venture back in 1994, and Qatargas first began delivering LNG to Japan and TEPCO in 1997, with the start-up of the Qatargas 1 Project.
Qatargas was established in 1984, and pioneered the Liquefied Natural Gas (LNG) industry in Qatar. Shareholders of Qatargas 1 joint venture are Qatar Petroleum, ExxonMobil, Total, Mitsui and Marubeni.