QATAR - The Other LNG Buyers.

Apart from Kogas' commitment to purchase 4.8m t/y from mid-1999, Rasgas has been negotiating with several potential buyers. On July 31, 1999, Rasgas signed with Petronet LNG of India a 25-year SPA for the supply of 5m t/y of LNG to the planned Dahej receiving and regasification terminal, in the western Indian state of Gujarat, and another 2.5m t/y to a Cochin terminal, in southern Indian state of Kerala. Deliveries to both terminals are to start from mid-2003. On Aug. 5, 1999, Rasgas and the Dakshin Bharat Energy Consortium signed a 20-year SPA for 2.6m t/y to be supplied from mid-2003 to a 1,886 MW power plant in Tamil Nadu, with a terminal to be built nearby. These SPAs require the building of two additional Rasgas trains at Ras Laffan by mid-2003

Other potential buyers include Chinese Petroleum Corp. (CPC) of Taiwan, which in October 1993 signed a letter of intent to take 2m t/y from 1999. But CPC has declined to sign a final SPA and take the LNG in 1999. The Petroleum Authority (PTT) of Thailand in early May 1995 signed an MoU with Rasgas for 2-2.5m t/y, but in late 1997 it indicated it may not buy the LNG in view of the financial crisis in that country. Botas of Turkey signed a letter of intent in January 1995 for 2m t/y, with an option for a further 2m t/y. But this, too, did not lead to a firm deal. The private Essar Group of India signed an MoU in 1995 for 2m t/y but later failed to turn this into a firm SPA.

Rasgas will not own the required tankers. LNG to Kogas is sold on fob basis and Rasgas is to charter South Korean tankers for LNG sold on CIF basis to other companies. Kogas and the other four members of its group in Rasgas are to own tankers built in South Korea to transport the LNG. The vessels are being built by Hyundai (which makes Moss-type LNG tankers), Daewoo (which can make membrane-type vessels), and Samsung.