Qatargas signs long-term LNG supply deal with Japan's Tepco

Qatar Liquefied Gas Co. Ltd. (Qatargas 1) has signed a long-term LNG sales and purchase agreement with Tokyo Electric Power Co. Inc. (Tepco), Japan’s largest LNG buyer. The SPA was signed June 11 in Doha.

The deal marks the first long-term bilateral agreement between Tepco and Qatargas, the companies said. Under the terms of the agreement, Qatargas 1 will deliver 1 million tonnes/year of LNG on a long-term basis starting from 2012.

Tepco is one of the original eight Japanese buyers who signed a multiparty contract with the Qatargas 1 venture in 1994. Qatargas first began delivering LNG to Japan and Tepco in 1997, with the start-up of the Qatargas 1 project.

Qatargas 1 consists of three onshore LNG trains with a total combined capacity of 10 million tpy. Qatargas 1 joint venture partners are Qatar Petroleum, ExxonMobil Corp., Total SA, Mitsui, and Marubeni.