Qatargas signs 20-year LNG supply deal with Malaysia

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, July 25 -- Qatargas has signed an agreement to supply Petronas LNG Ltd. of Malaysia with 1.5 million tonnes/year (tpy) of LNG for at least 20 years starting in 2013.

The deal marks the first time Qatargas signed a heads of agreement for the supply of LNG to the southeast Asian market, according to Qatargas Chief Executive Officer Khalid Bin Khalifa Al Thani.

"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," Al Thani said.

Gas from the Qatargas 2 joint venture will be delivered to Malaysia’s’ first regasification terminal, now under construction on the west coast of Peninsular Malaysia. The facility will be operational by mid-2012.

Last month, Qatargas announced the signing of an HOA for the long term supply of LNG to Energia Argentina Sociedad Anonima (Enarsa). Under terms of the HOA, Qatargas will deliver 5 million tpy of LNG to Enarsa at the Southern Cone LNG Hub in Argentina for 20 years beginning in 2014.

Qatargas said the LNG supply is expected to meet nearly 16% of Argentina’s total annual gas consumption.

Earlier this year, Qatargas and Royal Dutch Shell PLC said the first cargo of LNG from their Qatargas 4 project was bound for India’s Hazira receiving terminal aboard the Q-Flex LNG carrier Al Ruwais, owned by Qatar Gas Transport Co. (OGJ Online, Feb. 21, 2011).

Contact Eric Watkins at

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