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.

June 26, 2001

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).