Page 8 - GLNG Week 17 2022
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GLNG AFRICA GLNG
Algeria warns gas cut to Spain on LNG
diversion plans to Morocco
PROJECTS ALGERIA has warned it will cut gas supplies Maghreb pipeline will come from other sources
to Spain if the latter diverts part of the supply to but not Algeria. Spain clarified that the LNG flow
Morocco, as Madrid announced it would re-open and regasification to Morocco from the interna-
the Maghreb gas pipeline, Reuters reported, cit- tional markets aim to guarantee the country’s
ing sources inside the Algerian cabinet. energy security.
Algeria and Morocco have been at odds over Earlier in April, Algeria’s state-owned hydro-
the vast Saharan territory for decades. Morocco carbons firm Sonatrach warned that it could
annexed Western Sahara, a former Spanish col- raise the price of the gas it sells to Spain amid
ony, in 1975, and Algeria in response has kept its growing diplomatic tensions after Madrid
border with Morocco shut for decades. backed a Moroccan autonomy plan for West-
The Maghreb pipeline was closed in October ern Sahara. Algeria also recalled its ambassador
2021 after Algeria’s 25-year contract to supply to Spain in March, criticising Madrid over the
Spain expired. Spain announced that the gas reported change in its 42-year-old policy towards
that will be directed to Morocco through the its former colony.
KOGAS strikes deal for US LNG
supply deal with BP
SUPPLY STATE-OWNED Korea Gas (KOGAS) has LNG suppliers in Asia and the Middle East
struck a deal to buy US-produced LNG from BP. ended in 2019 alone and a further 7.02mn tpy of
The sale and purchase agreement (SPA) follows a contracts for LNG from Qatar are due to expire
heads of agreement (HoA) between the two sides by 2026.
that was reached in 2019. KOGAS has been seeking to extend or renew
Under the finalised deal, KOGAS will import some of its existing contracts while also looking
1.58mn tonnes per year (tpy) from BP’s Singapo- for new ones. In mid-2021, the company said it
rean subsidiary starting in 2025 for a period of 18 had struck a new 20-year deal with state-owned
years. The price of LNG sold under the deal will Qatar Petroleum – since renamed to QatarEn-
be indexed to the US’ Henry Hub benchmark, ergy – for the supply of 2mn tpy of LNG starting
which KOGAS said is considered “very compet- in 2025. KOGAS also imports some US LNG
itive” given current oil and LNG prices. Further already as a result of a 20-year SPA with Cheniere
financial details were not disclosed. Energy covering 3.5mn tpy that began in 2017.
The deal is the first LNG supply agreement The South Korean company noted that some
between KOGAS and BP. It comes as the South of the LNG under its new SPA would come from
Korean company works to replace long-term the Freeport LNG terminal in Texas, with which
supply agreements that are either expiring or BP has an offtake deal. BP is also an offtaker from
have already done so in the last three years. For Venture Global LNG’s Calcasieu Pass facility in
example, 5.78mn tpy worth of contracts with Louisiana, which entered service this year.
P8 www. NEWSBASE .com Week 17 29•April•2022
