Tuesday, Dec 06, 2011
--To supply 1.5 million tons of LNG per year over a 20-year period
--Delivery to begin in 2013
(Recasts lede. Adds detail in paragraph 3, background.)
DOHA (Zawya Dow Jones)--Qatar's RasGas Co. inked a long-term sale and purchase agreement with Taiwan's CPC Corp. Tuesday to supply 1.5 million tons of liquefied natural gas per year with an option for additional quantities.
The deal was announced by the two companies at a press conference at the World Petroleum Congress in Doha, Qatar.
Under the terms of the deal, RasGas, one of two liquefied natural gas producers in the Gulf Arab state, will deliver 1.5 million tons of LNG per year over a 20-year period starting in 2013.
CPC, Taiwan's sole importer of LNG, had in August expected Taiwan's annual LNG demand to rise to 15 million metric tons by 2020, from 11-12 million tons now.
CPC said at that time Taiwan has 11.8 million tons of annual supply in long-term contracts.
Qatar, holder of the world's third-largest natural gas reserves after Russia and Iran, is the world's biggest LNG exporter by far with capacity of about 77 million tons a year.
Last month RasGas said it delivered its first ever cargo of the super-cooled fuel to Turkey via one of its Q-Flex vessels.
RasGas is 70% owned by state-run Qatar Petroleum, with ExxonMobil Corp. (XOM) holding the remaining 30%.
-By Alex Delmar-Morgan, Dow Jones Newswires; +974 6659 9818; alex.delmar-morgan@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
06-12-11 0712GMT
