Total finalizes UK and Qatargas LNG deals

Friday, 08 December 2006
The French company also said it had taken an 8.35 percent stake in the South Hook LNG import terminal being constructed at Milford Haven in South Wales, UK. The Qatargas II deal follows the signature of sale and purchase agreements under which Total will purchase up to 5.2 million tonnes per annum of LNG from Qatargas II for a period of 25 years. Total said its offtake from Qatargas II would be delivered to France, the UK and the Gulf of Mexico. Qatargas II comprises two new LNG trains, each with an annual capacity of 7.8 MTPA. The other shareholders are Qatar Petroleum and ExxonMobil Corp. The start-up of the second train of the Qatargas II project is presently targeted for the fourth quarter of 2008 or the first quarter of 2009. Total, which is one of the founding partners of Qatargas, has interests in six of the world’s largest liquefaction plants, which represent around 40 percent of global LNG production capacity. More than one-quarter of the natural gas produced by Total in 2005 was dedicated to LNG production. Total said it is strengthening its position across the LNG chain, as illustrated by the recent signatures to acquire a stake in Brass LNG in Nigeria and in the Ichthys LNG project in Australia. After its UK deal to buy into the South Hook terminal venture, Total has interests in five regasification terminal projects.