Edison Gas to buy LNG from RasGas project

Edison Gas SPA has agreed to buy 3.5 million tonnes/year of liquefied natural gas from Ras Laffan Liquefied Natural Gas Co. Ltd. (RasGas) for 25 years. Financial terms were not disclosed.


By the OGJ Online Staff

HOUSTON, June 26 -- Edison Gas SPA has agreed to buy 3.5 million tonnes/year of liquefied natural gas from Ras Laffan Liquefied Natural Gas Co. Ltd. (RasGas) for 25 years.

Financial terms were not disclosed.

RasGas, a joint venture between Qatar Petroleum and an ExxonMobil Corp. affiliate, will begin delivering the LNG in 2005 to a receiving-regasification facility in the North Adriatic off Italy.

RasGas is expanding its LNG facilities at Ras Laffan in Qatar by adding a fourth train, bringing total capacity to 16 million tonnes/year. The gas will be produced from Qatar's North field.

Stuart McGill, President of ExxonMobil Gas Marketing Co., said, "The [agreement] between RasGas and Edison will combine the considerable strengths of both parties to bring a new source of gas supply to the Northern Italian market."

The announcement follows one outlining an agreement under which RasGas will supply 5 million tonnes/year of LNG to Petronet Ltd. of India.

Earlier this month, ExxonMobil signed a letter of intent to conduct a feasibility study for a gas-to-liquids plant in Qatar (OGJ Online, June 15, 2001).

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