EDF Signs Qatari LNG Deal

Qatari LNG exporter RasGas said June 29 that the RasGas 3 joint venture – Qatar Petroleum 70%, ExxonMobil 30% – had entered into a new LNG supply agreement with French power giant EDF.

Under the deal starting in 2017 and extending into the “medium term”, RasGas 3 will deliver up to 2mn metric tons/yr (up to 2.75bn m^³/yr) of Qatari LNG to EDF at Dunkirk in northern France.

An aerial view of the Dunkerque LNG complex in France (Source: Dunkerque LNG)

The new agreement complements existing long-term contracts between RasGas ventures and EDF Group subsidiaries for delivery of up to 4.6mn mt/yr to Italy’s Edison and for flexible supplies of up to some 3.5mn mt/yr to London-based EDF Trading for the Zeebrugge terminal in Belgium.

EDF's vice president for gas and CEO of Edison, Marc Benayoun, said that the new deal marked “a new important milestone in the excellent relationship with RasGas,” and would enhance the EDF group's global LNG portfolio. RasGas already delivers LNG to the EDF group under long term contracts in both Rovigo and Zeebrugge terminals.  

Dunkerque LNG meanwhile tells Natural Gas Europe that it still expects to receive its first commissioning cargo on July 8, with commercial operations at the terminal starting in September. That’s more or less on schedule; earlier this year it expected start-up still within 1H 2016. The first cargo is from Nigeria.

The EDF-led project cost over €1bn and will have 13bn m^³/yr regasification capacity. Shareholders are EDF with 65%, Belgian gas grid operator Fluxys with 25% and Total with 10%. Once it enters service, the terminal will be operated by Gaz-Opale, owned 51% by Dunkerque LNG and 49% by Fluxys. The nearby Belgian LNG import terminal at Zeebrugge is owned and operated by Fluxys.

Mark Smedley |  www.naturalgaseurope.com