RasGas II closes in on Florida gas deal

30 July 2004
Ras Laffan Liquefied Natural Gas Company II (RasGas II)and the US' FPL Group Resourcesannounced on 27 July the signing of a heads of agreement (HoA) for 6 million tonnes a year (t/y) of locally produced liquefied natural gas to be delivered into the US market, starting in mid-2008. Under the proposed 25-year sales and purchase agreement, RasGas II will supply the LNG to a proposed receiving and regasification terminal on Grand Bahama island, from where FPL plans to sell the regasified gas to wholesale customers in Florida.

The deal is part of RasGas II's plan to supply the US market with 15.6 million t/y of LNG, starting in 2008/09. Under an HoA signed last October by RasGas II shareholders, Qatar Petroleumand ExxonMobil Corporation, the US-bound gas will be produced by trains 6 and 7, each with capacity of 7.8 million t/y, to be built at the RasGas complex.

In early July, a joint venture of Japan's Chiyoda Corporationand Italy's Snamprogettiwas awarded by RasGas II the engineering procurement and construction (EPC) contract to build train 5, which will have capacity of 4.7 million t/y (MEED 9:7:04).

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