Qatargas achieved another milestone as it announced the signing of a Tripartite Sales and Purchase Agreement (SPA) to supply Liquefied Natural Gas (LNG) to Chubu Electric Power Company and Shizuoka Gas Company at a signing ceremony during the 2011 World Petroleum Conference in Doha.
Terms of SPA
Under the binding terms of the Tripartite SPA, Qatargas will transport and deliver ex-ship a minimum of 0.2 million tonnes per annum (MTA) of LNG to a cluster of LNG receiving terminals located in Japan including Chita, Kawagoe, Yokkaichi, Joetsu and Sodeshi, all in Japan. Qatargas will supply the agreed volumes to Chubu Electric Power Company and Shizuoka Gas Company from the Qatargas 1 joint venture starting from 2016.
Values customers
Khalid Bin Khalifa Al-Thani, Chief Executive Officer of Qatargas said: "This agreement is remarkable in many aspects. It further nurtures our long lasting relationship with Chubu Electric Power Company while it welcomes Shizuoka Gas Company as the first new long-term Japanese buyer of LNG, in addition to those 8 buyers which formed the currently existing consortium purchasing LNG from Qatargas 1 joint venture for contracts signed in 1992 and 1994. It is also an example of how Qatargas can grow its share of the Japanese gas market in partnership with Chubu Electric Power Company."
He further stated that: "Under the guidance of His Excellency Dr. Mohammed Saleh Al Sada, Minister of Energy & Industry of the State of Qatar and Chairman of the Board of Directors at Qatargas, Qatar has again demonstrated its continuous support to Japan as a nation and one of the world's most important economies. This agreement is further testimony of our long-term reliable commitment to Japan and the innovative ways in which Qatargas is able support new customers. Whether for a very large sale of LNG or for a smaller volume like under this Tripartite SPA, Qatargas values all of its customers and seeks to assist them all in their aspirations to grow in the future."
The agreement was signed by His Excellency Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry, Mr. Yuji Kakimi, Managing Executive Officer and General Manager of Fuels Department of Chubu Electric Power Company and Mr. Seigo Iwasaki, Chairman and Chief Executive Officer of Shizuoka Gas Company
