Qatar Liquefied Gas Company (Qatargas) has signed a new long-term LNG Sales and Purchase Agreement (SPA) with Tokyo Electric Power Company (TEPCO) that will help secure additional supply of LNG for the Japanese firm
This is the first long-term bilateral agreement between TEPCO and Qatargas, the world’s largest LNG supplier. Under the terms of the agreement, its Qatargas 1 unit will deliver 1 million tonnes per annum (MTA) of LNG on a long-term basis starting from August 2012.
Qatargas, with this deal and existing arrangements, will end up supplying approximately 2 million tonnes of LNG, or 5 per cent of its total production capacity, to TEPCO in 2012.
Qatargas chief executive officer Khalid Bin Khalifa Al-Thani said, “This agreement is further testimony of our long-term reliable commitment to Japan and reinforces Qatargas’ global reputation as a reliable supplier of LNG."
Japan is one of the biggest importers of LNG and TEPCO is the country's largest LNG buyer.
TEPCO managing director Takao Arai remarked, “We are confident that the execution of the contract between Qatargas and TEPCO will greatly contribute to our future stable procurement of LNG.”
