Qatargas, E ON sign 5 year sales and purchase agreement

Qatar Liquefied Gas Company Limited (4) (Qatargas 4) and E.ON Global Commodities SE (E.ON) today signed a flexible SPA for five years starting in January 2014 and covering a volume of approximately 1.5 million tonnes of LNG per year. The LNG will come from Qatargas 4 (Train 7), a joint venture between Qatar Petroleum and Shell, and will be delivered on-board Q-Max LNG vessels to the Gate LNG Terminal in Rotterdam, Netherlands. HE Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy & Industry and Chairman of the Board of Directors of Qatargas, signed the SPA on behalf of Qatargas 4, while Christopher Delbr?ck, CEO of E.ON Global Commodities SE, and Richard Baylis, Director of LNG, E.ON Global Commodities SE, signed on behalf of E.ON. Klaus Sch?fer, CFO of E.ON SE, also took part in the ceremony in Doha. HE Dr. Mohammed Bin Saleh Al-Sada welcomed the signature of the SPA as “another milestone in Qatar’s supply of clean energy to the world”. Dr. Al-Sada said: “We are very pleased with this agreement as it marks the beginning of a relationship between Qatargas, the largest LNG producing company in the world, and E.ON SE, one of the world’s largest investor-owned power and gas companies.” Qatargas’ Chief Executive Officer, Khalid Bin Khalifa Al Thani, also added: “The signing of this agreement represents a significant step for Qatargas in the development of its Global Strategy. We are delighted to have E.ON Global Commodities as a partner.” “Qatargas continues to be committed to building strong relationships with its customers based on trust, reliability, flexibility and operational excellence.” Speaking at a ceremony in Doha, Christopher Delbr?ck, CEO of E.ON Global Commodities SE, said: “This contract represents a significant step in the development of our global growth strategy and is a major achievement in forging a long-term partnership with the State of Qatar.” Richard Baylis, Director of LNG, E.ON Global Commodities SE, said: “I am very pleased that we have been able to conclude this agreement with Qatargas. It is the culmination of a lot of effort from both companies over a number of years to find a suitable agreement in a rapidly changing LNG marketplace. The deal works well because it utilizes our existing regasification position and provides Qatargas with access to arguably the most diverse European end user portfolio and, as a result, a new commercial home for their volumes.” John Roper, Head of Middle East, E.ON Global Commodities SE, also added: “This agreement shows our commitment to developing our presence in one of the world’s most important energy-focused regions. EON has been engaged with Qatargas for many years and we have developed a sound working relationship. It is through both company’s openness in discussion that we have been able to find a formula for the delivery of Qatari LNG into the EON gas portfolio that will provide flexibility and materiality for both companies.”Executive representatives from Qatar Petroleum, Qatargas 4 and E.ON Global Commodities attended the ceremony, which was held in Doha at the Four Seasons Hotel. Qatargas delivered its first LNG cargo to The Gate receiving terminal in Rotterdam in the Netherlands in July of this year under a Master Sales and Purchase Agreement (MSPA) signed between the two companies in 2011.