RasGas signs SPA implementation procedure with Petronet
Posted: 10 July 2003
Ras Laffan Liquefied Natural Gas Company Limited (II) (RasGas)
and Petronet LNG Limited (PLL) signed on July 7, 2003, an agreement
covering the Implementation Procedures of their Sales and Purchase
Agreement (SPA).
The SPA was originally signed in July 1999. The SPA Implementation
Procedure signing ceremony was held inNew Delhi, India and was attended
by senior officials from both RasGas and PLL.
The ceremony heralds a major milestone towards supplying the first
of Qatar’s liquefied natural gas (LNG) cargoes to India commencing
December 2003. These procedures will assist both RasGas and PLL
in administering the SPA and in meeting the contractual obligations
of both parties.
The sale and purchase of 7.5 million tonnes of LNG per annum (MMTA)
for a 25-year term makes this deal the largest single SPA in the
LNG industry’s history. RasGas is responsible for delivering
the LNG at Ras Laffan Port, while PLL is responsible for sea transportation
of the first 5 MMTA tranche to Dahej in Gujaerat State as well as
the second, 2.5 MMTA tranche to Cochin, Kerala State – both
in India.
In order to meet the SPA supply requirements, RasGas signed its
‘Engineering, Procurement and Construction’ (EPC) contract
in April 2001 for the construction of its third LNG train.
These new facilities are rated for an output of 4.7 MMTA of LNG
and, with a small increment from RasGas’ existing facilities,
will supply PLL’s requirements for the Dahej Terminal. Mechanical
completion of Train 3 facilities is scheduled for late 2003 and
supply to Dahej commences on 31st December 2003.
Similarly, PLL awarded its EPC contracts in December 2000 to a
consortium of companies led by IHI (Ishikawajima-Harima Heavy Industries
Co. Ltd.).
IHI is scheduled to complete construction of Dahej Terminal, late
this year. The Terminal will then be commissioned in line with RasGas’
initial cargo delivery.
PLL have also taken care of all marine activity at its Dahej Terminal
by awarding a contract to cover its port operations to PSA Marine-Ocean
Sparkle for a period of 10 years.
Other long-term partners in the RasGas/PLL production and supply
chain include the ship owning consortium Mitsui OSK (Leader), NYK
Line, K-Line, the Shipping Corporation of India (SCI) and Qatar
Shipping.
Together, they play a vital role in ensuring that the specialized
ships, which will transport LNG from Ras Laffan to Dahej, will do
so in a timely, safe and efficient manner.
PLL and the consortium entered into a Time Charter Agreement dated
31st March 2001, to accommodate such transportation.
For more information see http://www.rasgas.com.
Posted by Richard Price,
Editor Pipeline Magazine
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