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Mobil Announces RasGas' Signing of Agreement with Petronet for LNG Supply to India

3 August 1999

Mobil Announces RasGas' Signing of Agreement with Petronet for LNG Supply to India

    FAIRFAX, Va.--Aug. 2, 1999--Mobil Corporation announced that Ras Laffan Liquefied Natural Gas Company Limited (RasGas) has signed a sale and purchase agreement (SPA) to supply 7.5 million metric tons per annum (MMTA) of liquefied natural gas (LNG) from Qatar to India over a 25-year period.
    RasGas is a joint venture established in 1993 by Qatar General Petroleum Corporation (QGPC) and an affiliate of Mobil Corporation. Petronet is a joint venture holding company formed by four of India's largest public sector energy companies. Initial deliveries from RasGas will begin in July 2003, eventually reaching 5.0 MMTA to Dahej, Gujarat State and 2.5 MMTA to Cochin, Kerala State.
    "This is a significant step towards finalizing sales of LNG from Qatar's North Field, which is estimated to contain more than 380 trillion cubic feet of gas, to India where this fuel will be used to replace existing consumption of more expensive alternate fuels," said Thomas C. DeLoach, President, Global Midstream. "This agreement complements RasGas' contract to deliver 4.8 MMTA to Korea over a 25-year period. Deliveries to Korea will commence later this month."
    Initial deliveries of RasGas LNG to Petronet are targeted to begin in July 2003. Volumes are projected to climb to 2.5 MMTA by 2004 and to reach the 7.5 MMTA target by 2006.