Total begins LNG deliveries to GSPC
France’s Total has begun LNG deliveries to GSPC almost two years after it signed a 500,000-tonne deal with the state-owned company.
Total's first 205,074-cubic metre cargo arrived at Hazira, which it operates alongside Shell, on April 5 aboard LNG tanker Al-Karaana. Total supplied the cargo to Shell which supplied it to GSPC.
Total sourced the April 5 cargo from Qatar Gas where it has 16.7% in the Qatargas 2 liquefaction project. Signed in May 2011, Total's ‘string deal’ with GSPC is spread across nine cargoes with a cargo expected at Hazira every 30 to 45 days.
A senior GSPC source says the price is "Brent-linked." GSPC further secured its LNG supplies by signing a 20-year agreement with BG on March 20 this year at a floating rate of no less than 14.5% of the Brent crude benchmark.
BG will begin supplying 1.25m t/y from 2014-15, spread over 20 cargoes every year. This will rise to 2.5m t/y in 2017.
GSPC and BG signed a Heads of Agreement (HoA) in September 2011.