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News Releases 2004
ITOCHU Corporation and Qalhat LNG sign LNG Sale and Purchase Agreement
Jun 30, 2004
On 30th of June 2004, ITOCHU Corporation and Qalhat LNG signed a long term LNG supply agreement in Osaka, Japan. The agreement was signed by His Excellency Dr. Mohammed Al Rumhy, Minister of Oil & Gas - Sultanate of Oman as Chairman of Qalhat LNG and Mr. E.Kobayashi, President & C.E.O. of ITOCHU Corporation.
Qalhat LNG is constructing natural gas liquefaction facility with production capacity of nearly 3.7 million tonnes of LNG per year. The construction of the facility is due to be completed by the end of 2005 and the first LNG cargo is anticipated to sail from the Qalhat terminal in early 2006. The Qalhat LNG project is mainly owned by the Government of the Sultanate of Oman and it’s the second LNG project in Oman. The first LNG project was Oman LNG which started LNG production in 2000. Both projects, Qalhat LNG and Oman LNG, are located in the same vicinity in the eastern part of Oman. This project will strengthen the economic diversification policy of the Sultanate of Oman and boost its international energy business activities.
Under this agreement, Qalhat LNG will supply ITOCHU Corporation about 700,000 tonnes of LNG per year starting from 2006 for the period of 20 years. The agreement is on FOB basis and ITOCHU Corporation will be responsible to arrange the LNG vessel to lift LNG cargoes. Through this agreement, ITOCHU will be able to participate in trading of LNG through its trading function thus will contribute to the stable supply of the world-wide growing gas demand.