Qatargas Chief Executive Officer Sheikh Khalid Bin Khalifa Al Thani, Chief Executive Officer expects a higher demand for Liquefied Natural Gas (LNG) natural gas with many countries considering reducing the use of nuclear energy in the light of the Japan nuclear crisis following the Fukushima Daiichi power plant destruction in earthquake that struck the country on March 11. Speaking to Qatar News Agency (QNA) in an exclusive interview, Sheikh Khalid alluded to the discussions with Japan that would elaborate conditions for a number of long-term contracts to increase of LNG exports to Japan. Qatargas has committed to supply for one year (from April, 16 2011) additional LNG volumes equivalent to 60 plus conventional LNG cargo to Japan, demonstrating the company's commitment to support long-term Japanese customers, he said. Qatargas supplies a total of 6 million metric tons per annum (mtpa) of LNG from Qatargas 1 to Japan under long term contracts. The first shipment of LNG was delivered to Japan in 1997. On the possibility of exporting of additional 3 million metric tons of LNG to Japan, Sheikh Khalid said such decision could be determined by the Japanese government's policy during the next phase in terms of increasing or decreasing the country's reliance on nuclear energy. Qatargas would increase LNG shipments to Dubai, UAE he said, The first the first cargo was dispatched in December 2006 through a Q-Flex vessel with LNG produced from Qatargas 2. In 2008 Qatargas, Shell and Dubai Supply Authority (DUSUP) signed a series of agreements under which LNG would be supplied to DUSUP primarily from Qatargas 4 from 2011. On the role of receiving terminals in propelling Qatar as a top LNG producer, Sheikh Khalid said, “Qatargas has invested in long term capacity creation through the construction of large mega-trains and ships to transport our LNG efficiently; building of terminal capacity in different markets such as the UK (South Hook) and US (Golden Pass). This creates flexibility and capacity in these markets. By securing access to the liquid gas markets of the US and the UK, Qatar was able to rapidly expand its LNG production. “Since our contracts into these markets have diversion rights we are able to capture new market opportunities as they appear rather than most projects which seek to do this only prior to their Final Investment Decision. BM
