Qatar Signs New LNG Sales & Purchase Agreement with CPC Corporation Taiwan

Doha, December 06 (QNA) -RasGas Company Limited (RasGas) announced on Tuesday that Ras Laffan Liquefied Natural Gas Company Limited (3) (RL 3) has entered into a new long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with Taiwan state-owned energy company CPC Corporation, Taiwan (CPC). The agreement was signed by His Excellency Dr Mohammed Bin Saleh Al Sada, Minister of Energy and Industry for the State of Qatar, and Chairman of RasGas and RL 3, and Mr Shao-Hua Chu, Chairman of CPC. Commenting on the occasion, His Excellency Dr. Al Sada said: "This latest agreement with our long-time partner, CPC, is a perfect example of how Qatari LNG producing ventures continue to respond to our customer needs through the capabilities and flexibility they have. I am pleased to note that natural gas is and will continue to be the fuel of choice to meet rapidly expanding and long-term energy requirements in Asia and world-wide, due to its environmental benefits, safety and reliability. This agreement is also a continuing demonstration of RasGas capabilities and flexibility to meet market demand." For his part, Shao-Hua Chu said: "Recently, the government has announced a new energy policy which clearly states plans and guidelines to build a green energy and low carbon environment, and to encourage the consumption of natural gas in Taiwan." "Qatar and Taiwan have long enjoyed a good relationship and this agreement is further evidence of these strong ties and another milestone for long-term security of LNG supply to Taiwan. In addition to LNG, I believe that Qatar and Taiwan can expand the cooperative relationship in more areas of mutual interests," he added. Under the terms of the SPA, RL 3 will deliver 1.5 million tonnes per annum (Mta) of Qatari LNG for 20 years starting in 2013, in addition to incremental volumes from 2012 to 2016. This agreement is the second long-term SPA between a RasGas venture and CPC. It complements an existing SPA, under which deliveries commenced in 2008 for the supply of 3 Mta of LNG for a period of 25 years. Meanwhile, RasGas Managing Director Hamad Rashid Al Mohannadi said: "RasGas looks forward to continuing our strong and long-term relationship with CPC. This agreement demonstrates our determination to ensure Qatari LNG reliably meets global energy demands and provides security of supply." It is noted that RasGas Company Limited (RasGas) is owned by Qatar Petroleum and ExxonMobil RasGas Inc. RasGas operates production facilities to treat, liquefy and export LNG to countries across Asia, Europe and the Americas. Based in Ras Laffan, Qatar, RasGas currently produces approximately 37 million tonnes of LNG per annum (Mta) with seven trains in operation. While Ras Laffan Liquefied Natural Gas Company Limited (3) RL (3) : Established in 2005 to produce LNG and related products. RL (3) owns Trains 6 and 7, which each produce 7.8 Mta. It worth to mention that CPC Corporation, Taiwan (CPC) is the sole LNG importer and No.1 enterprise in the Republic of China (Taiwan) with a variety of functional units around the island. As a state-run enterprise, CPC is responsible for the development and supply of petroleum and natural gas, and is the core of Taiwan s petrochemical industry. LNG imports are expected to reach 12 million tons in 2011. CPC s vision of the future is to become an international conglomerate with diversified operations in petroleum, petrochemical, and high-tech fields. (QNA)