Qatargas 4 project to supply LNG to Centrica in the UK

Source: Qatargas

Qatargas signed a Sales and Purchasing Agreement (SPA) to supply liquefied natural gas (LNG) to Centrica plc, the largest supplier of gas to customers in the UK

As per the agreement, Qatargas will deliver up to 2.4 million tonnes per annum of LNG from the Qatargas 4 project to the UK Isle of Grain Terminal for the next three years. 

His Excellency Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry and Chairman of Qatargas Board of Directors, said: 

“The State of Qatar is keen to support the UK’s energy requirements and this agreement is yet another important milestone in our mutual energy relationship. We are committed to efficiently and reliably delivering LNG to the UK through the Isle of Grain Terminal.” 

The signing was conducted by Qatargas Chief Executive Officer, Khalid Bin Khalifa Al Thani and Centrica Chief Executive, Sam Laidlaw, following the Heads of Agreement which was signed by His Excellency Dr. Al Sada during the visit of the UK Prime Minister, David Cameron to Qatar on 23rd February 2011. 

The UK is the world’s third largest consumer of gas and one of the fastest growing markets for gas imports. In 2010, Qatar supplied the UK with 15 per cent of its total gas demand, and by 2025, LNG will supply around 50 per cent of UK gas needs. The current deal is likely to supply around three per cent of the UK gas needs, and around 10 per cent of UK residential gas demand. 

Commenting on this achievement, Qatargas CEO Khalid Bin Khalifa Al Thani said: 

“This significant deal heralds the start of a new working relationship between Qatargas and Centrica. It further underscores Qatargas commitment to the UK as one of our key gas markets. I am particularly happy that this signing coincides with the arrival of the first Q-Max LNG vessel, Bu Samra, at the Isle of Grain Terminal on Wednesday.”

Centrica Chief Executive, Sam Laidlaw, emphasised once again the importance of the deal announced by Centrica on 23 February, 2011: 

“The relationship between Qatar, the world’s leading LNG exporter, and the UK, is increasingly important as we become increasingly dependent on imported gas to supply our UK customers. I am proud to be signing this deal today, which will provide enough LNG to meet ten percent of UK residential demand over the next three years.” 

Andy Brown, Shell’s Executive Vice President and Director of Qatargas 4 said: “We would like to congratulate Qatargas on this outstanding achievement. Shell is very proud that the United Kingdom will now be added to the portfolio of markets supplied by Qatargas 4, which already includes Dubai, China and the United States.”
Established in 1984, Qatargas pioneered the LNG industry in Qatar and now has a production capacity of 42 million tonnes of LNG per annum from its seven trains, delivering LNG safely and reliably to it customers in five continents from its facilities in Qatar. 

Centrica is a top 30 FTSE100 company well positioned to pursue growth opportunities in its chosen markets in the UK and North America. Centrica secures and supplies gas and electricity for millions of homes and businesses and offers a distinctive range of home energy solutions, low carbon products and services.
The Qatargas 4 project is a joint venture between wholly-owned affiliates of Qatar Petroleum (70%) and Royal Dutch Shell plc (30%). Qatargas 4, a 7.8 million tonnes-per-annum liquefaction plant, comprises upstream gas production facilities to produce approximately 1.4 billion cubic feet per day of natural gas, including an average of approximately 70,000 bbl/d of condensates and petroleum products from Qatar's North Field over the 25-year life of the project.

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