Qatargas to supply LNG to Petronas over 20 yrs

DOHA (Qatar): Qatargas will supply 1.5 million tonnes of liquefied
natural gas (LNG) to Petroliam Nasional Bhd over a 20 year period,
which is about 5% of Malaysia's current annual average domestic natural
gas demand

The heads of agreement was signed on Sunday, July 24 between Qatargas and Petronas' unit Petronas LNG Ltd.

Qatargas will deliver 1.5 million tonnes per annum of LNG to Malaysia
for a period of at least 20 years beginning in 2013. This is equivalent
to about 5% of Malaysia's current annual average domestic natural gas
demand, which is growing at a rate of around 6% per annum, Qatar News
Agency (QNA) reported.

The agreement was signed by chief executive officer, Qatargas, Khalid
Bin Khalifa Al Thani, and director of Petronas LNG Ltd. and vice
president of Global LNG, Petronas Adnan Zainol Abidin.

Minister of Energy and Industry and chairman of Qatargas Dr Mohammed
Bin Saleh Al Sada Qatar and Malaysia have long enjoyed an excellent
relationship and this transaction is further evidence of the strong ties between the two nations.
Khalid said: "It is the first time Qatargas has signed a HOA for
supplying LNG to the Southeast Asian market. We are very pleased with
this achievement as it represents the first long-term agreement for
supplying LNG to one of the world's fastest growing LNG markets.

"We look forward to a strong and long-term relationship with
Petronas, one of the world's premier energy companies. This milestone
further
demonstrates our commitment to supplying all corners of the globe with reliable LNG supplies."

Petronas executive vice president, gas & power, Datuk Anuar Ahmad
said: "Petronas views Qatargas as a strategic long term supplier of LNG
for Malaysia, ensuring its security of supply. The signing of this HOA
marks another important milestone in the growing relationship between
Petronas and Qatar Petroleum.


Qatargas will supply the agreed volumes to Petronas from the
Qatargas 2 joint venture, onboard its Q-Flex fleet of vessels to
Malaysia's first
regasification terminal.

The terminal is being built on the western coast of Peninsular
Malaysia (Melaka) and is expected to become operational by mid 2012,
coinciding with the 25th World Gas Conference to be held in Kuala Lumpur in June the same year.

Qatargas, established in 1984, pioneered the LNG industry in Qatar.
Today Qatargas is the largest LNG producer in the world with a
production capacity of 42 million tonnes per annum of LNG, from its
seven trains delivering LNG safely and reliably to its customers in all
four corners of the world from its first class facilities in Qatar. -
Bernama