RasGas II and FPL Group Resources announce Heads of Agreement to supply LNG to Florida via proposed Bahamas LNG terminal
Posted: 28 July 2004
Ras Laffan Liquefied Natural Gas Company Limited (II) (RasGas (II)), a joint venture between Qatar Petroleum and ExxonMobil RasGas Inc. (an ExxonMobil affiliate), and FPL Group Resources LLC, a subsidiary of FPL Group, Inc. (NYSE: FPL), today announced the signature of a Heads of Agreement (HOA) to supply liquefied natural gas (LNG) from Qatar to a proposed LNG terminal and regasification facility located at South Riding Point on Grand Bahama Island.
Under terms of the HOA, RasGas (II) and an affiliate of FPL Group Resources, have entered into an exclusive relationship and expect to complete an LNG sale and purchase agreement for approximately 800,000 million British Thermal Units (MMBtu) per day of LNG, or approximately 6 million tons per annum to be delivered over a 25-year period beginning in mid 2008.
The feed gas will come from Qatar ’s North Field, the largest offshore non-associated natural gas field in the world, with proven natural gas reserves in excess of 900 trillion cubic feet (tcf). FPL Group Resources plans to sell the regasified LNG to wholesale customers throughout Florida .
RasGas ventures are currently engaged in projects that are expected to deliver more than 36 million tons per year to Korea , India , Europe and to the United States by 2011.
“Qatar Petroleum, through its joint venture participation in RasGas (II), is very pleased for this opportunity to sign a long-term agreement for the supply of liquefied natural gas to FPL Group Resources LLC for the United States market. We anticipate a close and mutually beneficial relationship with the Bahamas , as that country is an integral part of this project's success,” said Dr. Ibrahim B. Ibrahim, Vice Chairman of RasGas Board of Directors.
"Today’s announcement is another important step in bringing an additional supply of much needed natural gas to South Florida ,” said Brad Williams, vice president, Gas Projects, for FPL Group Resources. “RasGas is a proven leader in the global LNG business and shares our commitment to safety and environmental stewardship. We look forward to continue working with the Bahamian government to ensure the success of this project.”
As previously announced, FPL Group Resources recently executed a precedent agreement with Seafarer Bahamas Pipeline Ltd. and Seafarer US Pipeline Inc., subsidiaries of the El Paso Corporation, for transportation of regasified LNG from the proposed LNG terminal on Grand Bahama Island.
RasGas (II) is a joint venture formed in 2001 between Qatar Petroleum and ExxonMobil RasGas Inc. (70/30 percent). The venture encompasses production operations from Qatar 's giant North Field for the manufacture of LNG, and exports LNG to current and anticipated markets in Asia/Pacific, Europe and in the United States . By 2011, the RasGas venture is expected to process and supply more than 36 million tons a year of LNG to meet rising global demand.
For additional information visit www.rasgas.com
FPL Group, with annual revenues of more than $9 billion, is nationally known as a high-quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves more than 4.2 million customer accounts in Florida . FPL Energy, LLC, an FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels.
Additional information is available from www.FPLGroup.com, www.FPL.com and www.FPLEnergy.com
Posted by Richard Price,
Editor Pipeline Magazine
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