Qatargas sold its first cargo of liquefied natural gas (LNG) to Jovo LNG Storage and Transportation Co., Ltd. (“JOVO”), an independent LNG importer from the People’s Republic of China. The 64,000 cubic meter cargo was sold on a free-on-board basis and loaded on to the vessel LNG Lerici at Ras Laffan port on 22 October pursuant to the FOB Master Sale and Purchase Agreement signed by the parties earlier this summer. The cargo will be delivered to JOVO’s LNG terminal located in Lisha Island, Dongguan in the Guangdong province.
This represents the first deal of its kind concluded by Qatargas with an independent and privately owned LNG importer in the People’s Republic of China where until today Qatargas has only supplied LNG to Chinese state-owned national oil and gas companies.
The recent development in the Chinese market to promote cleaner fuels has encouraged and supported the growth of smaller LNG players like JOVO which enjoys its niche market in the Guangdong province by providing its customers with LNG delivered by a fleet of trucks, as well as with LPG, methanol and DME.
Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer said:
“This is an important milestone for Qatargas. This achievement highlights Qatargas’ capability to supply LNG not only to major LNG players around the globe, but also demonstrates our ability to work successfully with small-scale buyers and cater to their specific needs. This delivery will undoubtedly encourage other potential independent players both in the People’s Republic of China and across the world to consider Qatargas as a reliable source of LNG no matter how big or small their operations are.”
Mr. Zhang Jianguo, Chief Executive Officer of JOVO, stated:
“After more than two years of hard negotiations and friendly communications, vigorous support from China’s National and Guangdong Provincial Energy Administration has created a new prospect for Chinese Private Enterprise to import LNG. The first LNG cargo from Qatargas is an achievement and it is also an important milestone for JOVO. I believe there will be better cooperation between JOVO and Qatargas. The success of this business deal gave a powerful impetus to the realization of JOVO’s enterprise mission to promote the low carbon economy and to share the prosperous future. JOVO sincerely hopes that through the future good cooperation with Qatargas, to provide better service to promote the development of China’s Clean Energy.”
Qatargas is the world’s largest LNG producing company with a production capacity of 42 MTA. The State of Qatar, as the world’s leading LNG producer, anticipates that the People’s Republic of China will become one of the world’s largest gas markets.