Under terms of the HOA, an affiliate of FPL Group Resources and RasGas (II) have entered into an exclusive relationship and expect to complete an LNG sale and purchase agreement for approximately 800,000 million British Thermal Units (MMBtu) per day of LNG, or approximately 6 million tons per annum to be delivered over a 25-year period beginning in mid 2008.
The feed gas will come from Qatar's North Field, the largest offshore non-associated natural gas field in the world, with proven natural gas reserves in excess of 900 trillion cubic feet (tcf). FPL Group Resources plans to sell the regasified LNG to wholesale customers throughout Florida.
RasGas ventures are currently engaged in projects that are expected to deliver over 36 million tons per year to Korea, India, Europe and the US by 2011.
"Today's announcement is another important step in bringing an additional supply of much needed natural gas to South Florida," said Brad Williams, vice president, Gas Projects, for FPL Group Resources. "RasGas is a proven leader in the global LNG business and shares our commitment to safety and environmental stewardship. We look forward to continue working with the Bahamian government to ensure the success of this project."
"Qatar Petroleum, through its joint venture participation in RasGas (II), is very pleased for this opportunity to sign a long-term agreement for the supply of liquefied natural gas to FPL Group Resources LLC for the United States market. We anticipate a close and mutually beneficial relationship with the Bahamas, as that country is an integral part of this project's success," said Dr. Ibrahim Ibrahim, vice chairman, RasGas Board of Directors.
The HOA is subject to the FPL Group Resources affiliate successfully competing to provide regasified LNG to Florida Power & Light Company and other Florida customers and obtaining certain regulatory approvals. Florida Power & Light is expected to issue a Request for Proposals seeking a supply of gas from LNG as a new fuel source to generate electricity for its customers.
As previously announced, FPL Group Resources recently executed a precedent agreement with Seafarer Bahamas Pipeline Ltd. and Seafarer US Pipeline Inc., subsidiaries of the El Paso Corporation for transportation of regasified LNG from the proposed LNG terminal on Grand Bahama Island.
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