TEPCO signs 1m tonnes per year deal with Qatargas
Long-term sales and purchase agreement hammered out in Doha meeting
Qatar Liquefied Gas Company Limited (Qatargas 1) has entered into a new long-term LNG Sales and Purchase Agreement (SPA) with the largest Japanese LNG buyer, Tokyo Electric Power Company, Incorporated (TEPCO).
Under this agreement, TEPCO will purchase approximately 1 million tons of LNG per annum on a long-term basis effective from August 2012.
"Given the increased thermal power generation following the earthquake disaster, TEPCO has communicated to Qatargas, the existing long-term contract seller, the need for an additional supply of LNG. Hence, on this occasion we have concluded the execution of a new long-term sales contract," said a TEPCO statement.
The agreement was signed by His Excellency Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman of the Board of Qatargas, in the presence of Mr.Takao Arai, Managing Director of TEPCO., in a ceremony held in Doha.
Under the terms of the agreement, Qatargas 1 will deliver 1.0 million tonnes per annum (MTA) of LNG on a long-term basis starting from 2012.
TEPCO is one of the original eight Japanese buyers who signed a multi-party contract with the Qatargas 1 venture back in 1994, and Qatargas first began delivering LNG to Japan and TEPCO in 1997, with the start-up of the Qatargas 1 Project.
Japan is one of the biggest importers of LNG and this announcement marks the continued partnership between the State of Qatar and Japan since diplomatic relations started 40 years ago.