Qatargas, the world’s largest LNG producer, signed a five-year sales and purchase agreement with Petronas LNG UK yesterday, expanding a strategic import deal to Europe in the face of a looming global glut of gas supplies.
Under the agreement, Qatargas will deliver 1.1mn tonnes of LNG per year to the UK-based venture until 2023, extending a current five-year contract that was due to expire in 2018.
The LNG will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Royal Dutch Shell Plc and will be delivered to the Dragon LNG terminal at Milford Haven in the UK.
Qatargas is looking to Britain and the Netherlands in an effort to weather an impending global gas glut through expanding import deals into Europe’s most liquid markets, industry sources told Reuters in March.
