Spain Contracts for the Future

Spanish gas conglomerate, Gas Natural, is set to buy 2 billion cubic metres of liquefied natural gas (LNG) per annum over a 20-year period from the Qatar Liquefied Gas (Qatargas) company. This long-term supply contract will come into force on 2005. At the same time, the Spanish group and Qatargas have agreed on extending two contracts to supply gas to Gas Natural until 2012: one was supposed to expire in 2007 and the other in 2009. The dual operation is a reflection of an anticipated huge upsurge in the level of demand for gas in Spain.