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DOHA, Oct 19 (Reuters) - Qatargas, the world's largest LNGproducer, signed a five-year sales and purchase agreement withPetronas LNG UK on Wednesday, expanding a strategic import dealto Europe in the face of a looming global glut of gas supplies.
Under the agreement Qatargas will deliver 1.1 million tonnesof liquefied natural gas (LNG) per year to the UK-based ventureuntil Dec. 31 2023, extending a current five-year contract thatwas due to expire on Dec. 31 2018.
Qatargas is looking to Britain and the Netherlands in aneffort to weather an impending global gas glut through expandingimport deals into Europe's most liquid markets, industry sourcestold Reuters in March.
Qatar must lock in buyers for its unsold supply just as newAustralian and U.S. producers muscle into its prized Asianmarkets.
Petronas UK is a subsidiary of Petronas, thenational oil and gas company of Malaysia.
The LNG will be supplied from Qatargas 4, a joint venturebetween Qatar Petroleum and Shell and willbe delivered to Dragon LNG terminal at Milford Haven in theUnited Kingdom. (Reporting by Tom Finn, editing by Louise Heavens and SusanThomas)
