RasGas has agreed to sell Korea Gas Corp (Kogas) an additional 2mn tonnes a year of liquefied natural gas (LNG) for the next 20 years.
Rasgas will boost LNG supplies to Kogas by 2mn metric tonnes a year under a 20-year agreement.
From RasGas 3 consortium
The company said it will commit the volumes from the RasGas 3 consortium - a joint venture between Qatar Petroleum (70 per cent) and ExxonMobil (30 per cent) - that operates RasGas trains 6 and 7.
"This agreement is further evidence of these strong ties and helpful for long term security of LNG supply to Korea," Kogas chief operating officer Young Sung Park said in a statement.
Deliveries to begin in 2013
Deliveries under the agreement are set to begin in 2013, RasGas said in a statement distributed at the signing ceremony in Doha. The volumes will increase total LNG dedicated to Kogas, under long- term agreements to 9mn tonnes, it said.
Kogas already has contracts with Rasgas to receive a total of around 7mn tonnes a year until 2024-2026. RasGas signed an agreement to send 1.5mn tonnes of LNG to Taiwan's CPC Corp in December.
Huge gap in price
"The price is quite good," Ibrahim Ibrahim, economic adviser to Qatar's emir, said at the signing, where the sale price wasn't disclosed.
"It's way different from the prices in other markets because the market in the Far East, as you know, the gap is huge between the Far East and Europe and, of course, if you put in the States, it's even bigger."
Qatar tries to sell its LNG at a price that is equal to oil on an energy equivalent basis, Ibrahim added.
