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Monday, 01 December, 2008, 22:50 GMT | more >>

Qatargas hopes for China deal



By Upstream staff 

Qatar liquefied natural gas producer Qatargas is in talks with its partner Shell over long-term LNG sales to China, a Qatargas spokeswoman said today.

"The parties are optimistic about these long term supply discussions from Qatargas to China," she told Reuters.

"Should these discussions be successful this would be the first long-term deal for Qatari LNG to China."

In London, a Shell spokewoman said Qatargas and Shell were in talks with Petrochina about long-term LNG sales to China.

"I can confirm that we are in discussions with Qatargas and Petrochina about selling Qatari LNG to China," she said.

She would not comment on the amount of LNG under discussion.

Qatargas and Shell are partners on the Qatargas 4 project, due to bring 7.8 million tonnes of LNG on line in 2010.

State-run Qatar Petroleum owns 70% of the project, while Shell owns the rest.

The bulk of the exports had been earmarked for export to the US, and Shell has arranged capacity at the US Elba Island facility to receive the gas.

It was unclear if Shell planned to divert gas to China previously earmarked for delivery to the US.

Qatargas has announced in the past two months that it plans to deliver LNG to Mexico and Thailand as it looks to secure diverse markets for its gas.

Qatar aims to produce around 77 million tonnes of LNG in 2010, up from around 31 million tonnes now.


Thursday, 14 February, 2008, 18:03 GMT  | last updated: Thursday, 14 February, 2008, 18:41 GMT

Load her up? Qatargas is in talks with Shell regarding long-term sales to China, it was reported today
 

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