Qatar LNG: More Sales To Europe But Flexibility The Key

Fresh LNG sales deals between Qatar and EDF and RWE confirm the LNG superpower’s strategy of forging stronger alliances with European buyers in response to an Asia-Pacific supply glut. But a strong buyers’ market is making it difficult for Qatar to dictate the terms, with buyers insisting on ever-more flexibility.

Under the most recent deal, Qatargas agreed to deliver up to 1.1mn tons/year to RWEST, the supply and trading arm of Germany’s RWE, as part of a “flexible sale and purchase agreement” (SPA). The LNG will come from Qatargas 3, a JV grouping Qatar Petroleum, ConocoPhillips and Mitsui. The SPA with RWE will last seven and a half years. For its part, France’s EDF signed up to another SPA with Qatar’s Rasgas for the supply of up to 2mn t/y into its newly commissioned import terminal in Dunkirk, northern France. This comes on top of three exiting long-term SPAs between the two companies, for the delivery of up to 4.6mn t/y to EDF’s Italian subsidiary Edison and up to 3.5mn t/y to EDF Trading in Belgium. (CONTINUED - 882 WORDS)