Taiwan to Import more LNG from Qatar

Taiwan's state-owned CPC Corporation on Tuesday signed a 20-year contract with Qatar's RasGas to buy 1.5 million tons of liquefied natural gas a year.

The sales and purchase agreement was signed by Taiwan's sole importer of LNG and RasGas subsidiary Ras Laffan Liquefied Natural Gas Co Limited (3), or RL3, on the sidelines of the 20th World Petroleum Congress held in Doha.

The delivery of LNG for the contract will start in 2013, "in addition to incremental volumes from 2012 to 2016," a statement distributed at the signing ceremony said.

The agreement is the second with CPC after an existing 25-year deal to deliver three million tons annually, under which supplies to Taiwan began in 2008.

"Recently, the government has announced a new energy policy which clearly states plans and guidelines to build a green energy and low carbon environment, and to encourage the consumption of natural gas in Taiwan," said CPC chairman Shao-Hua Chu.

Qatar's energy minister, Mohammed al-Sada, said the agreement was a "continuing demonstration of RasGas's capabilities and flexibility to meet market demand."

The two sides declined to disclose the value of the contract.

The small emirate, which holds the world's third-largest gas reserves, last year celebrated raising its production capacity for LNQ to 77 million tons annually, boosting its position as the world's largest producer.