Repsol Signs a Multiyear LNG Supply Agreement with Qatargas

MADRID, Oct. 7 /PRNewswire/ --

• Repsol and Qatargas sign an agreement to supply the Canaport™ LNG plant in Canada.
• The new multiyear LNG agreement enhances Repsol's portfolio as a reliable and diversified supplier to the United States markets.
• Repsol operates the Canaport facility, which has the ability to supply over 1 bcf (28 Mm(3)) per day of natural gas into the Northeast US and Eastern Canada markets.
• Repsol has delivered over 100 bcf of natural gas to Northeast US since Canaport LNG opened.

Repsol and Qatargas today signed a multiyear LNG agreement under which Qatargas will supply LNG to Repsol Energy Canada Ltd. at the Canaport™ LNG facility in Saint John, New Brunswick. The agreement was signed at Qatargas's headquarters in Doha (Qatar).

(Photo: http://photos.prnewswire.com/prnh/20101007/NY78655 )

(Photo: http://www.newscom.com/cgi-bin/prnh/20101007/NY78655 )

Qatargas will deliver LNG to Canaport LNG using both Q-Flex and Q-Max ships. The Q-Max and Q-Flex vessels are the largest LNG tankers in the world with capacity to carry the equivalent of approximately 5.6 and 4.6 billion cubic feet of natural gas, respectively. Canaport is one of the few terminals worldwide with capacity to dock these ships.

"The new LNG supply from Qatar strengthens Repsol's position in the Canadian and Northeast US markets as a reliable, diversified, flexible supplier of natural gas," said Benjamin Palomo, Executive Director of LNG for Repsol.

Repsol is expanding in LNG to reinforce its competitive positioning, as the business is seen as a key driver of medium and long-term growth. Repsol is already one of the world's largest LNG operators.

Canaport LNG, opened by Antonio Brufau in September of 2009, is the first land-based LNG receiving and regasification facility to be built in over 30 years on North America's Atlantic coast. Repsol has delivered over 100 bcf of natural gas to Northeast US since Canaport LNG opened.

The 1 Bcf per day facility supplies natural gas to homes, businesses and industry in Canada and the northeast US. The Canaport LNG Terminal, along with Repsol's other natural gas assets, are capable of meeting about 20 percent of the natural gas demand in New York and New England.

As a result, Repsol has become a major player in the Eastern Canada and Northeast US natural gas markets. Currently, natural gas supplies 75% of the electric generation market in Northeast USA and continues to increase its share in the home heating market.  

The new multiyear LNG supply agreement with Qatargas further enhances Repsol's supply portfolio and its ability to provide more secure supplies of natural gas to Eastern Canada and the Northeast USA markets.  

Qatar, the world's leading exporter of LNG, has the third-largest oil and gas reserves worldwide (about 14% of the world total) with proven oil reserves of approximately 15 billion barrels and over 900 trillion cubic feet of proven natural gas reserves 

About Repsol

Repsol is a fully integrated oil and gas company, operating in over 30 countries.  It is one of the ten largest private oil companies in the world and one of the world's largest LNG players. Repsol is the managing general partner in Canaport™ LNG Limited Partnership, the entity that owns and operates Canaport LNG. Repsol has contracted for 100% of the capacity in Canaport LNG.  To learn more about Repsol in North America or Repsol international, please visit www.repsol.com or www.repsolenergy.com.

About Qatargas

Qatargas pioneered the liquefied natural gas (LNG) industry in Qatar. Today, the Company is realizing its vision to deliver LNG to customers around the globe from its world-class facilities in Qatar.

Qatargas was established in 1984 and since that time the Company has progressively established itself as a leading player in the LNG industry. Today Qatargas is exporting 26 million tonnes a year of LNG from the five LNG trains. Qatargas' customers are now spread throughout the world including Japan, Spain, the United Kingdom, Canada and China.

Currently, the company is undergoing a period of rapid expansion, which when completed at the end of this year will see Qatargas exporting 42 million tonnes a year of LNG to markets in Europe, Asia and North America.

SOURCE Repsol