Qatar’s RasGas Company (RasGas) has signed a medium-term flexible contract with global energy provider E.ON to supply liquefied natural gas (LNG) from Qatar to the Isle of Grain in the UK, it was announced on Wednesday.
The three-year contract has the potential to supply up to around two billion cubic meters over its term, a statement said. The financial details of the deal were not disclosed.
Hamad Rashid Al Mohannadi, CEO of RasGas, said: “RasGas has four long-term LNG contracts in Europe, and the UK is a very important market to the State of Qatar. As a global energy supplier, RasGas remains focused on executing its short and long-term sales commitments in a safe and reliable manner.”
Christopher Delbrück, CEO of E.ON Global Commodities SE, added: “The contract is a significant step in the development of our global growth strategy and is another big step in the development of our long-term partnership with the State of Qatar.”
E.ON Global Commodities is the energy trading business of Germany-based E.ON, a global investor-owned power and gas company.
“E.ON regards Qatar as a priority country in the expansion of the company’s LNG business model, including short and long-term supply agreements,” the statement said. The company opened an office in Doha, in 2009, in addition to its Middle East office in Dubai.
Qatar has the world’s third-largest gas reserves and is the biggest exporter of LNG in the world.
RasGas, established in 2001 by Qatar Petroleum and ExxonMobil RasGas, exports to countries across Asia, Europe and the Americas with a total LNG production capacity of approximately 37 million tonnes per annum. It extracts, processes, liquefies, stores and exports LNG and its derivatives from Qatar’s North Field.
For pipeline sales gas to the domestic market, RasGas also operates the Al Khaleej Gas Projects, AKG-1 and AKG-2 supplying approximately two billion standard cubic feet (Bscf) per day.
The company is currently adding production capacity by building the Barzan Gas Project which, when fully operational in 2015, is expected to supply approximately 1.4 Bscf of additional sales gas per day to the Qatari market to meet growing demand for energy.