Qatar Petroleum Establishes LNG Trading Arm, Announces First Deal with Singapore
QP Trading wins LNG supply tender to deliver up to 1.8 MTA to Singapore until 2032
Qatar Petroleum announced the establishment and the start of operations of QP Trading LLC (QP Trading), as their dedicated LNG trading arm.
Wholly-owned by Qatar Petroleum and based in Doha, QP Trading is mandated to build a globally diversified portfolio of third party and equity LNG. QP Trading will also manage the price risk exposure of its portfolio through physical and derivatives trading.
These new capabilities, combined with a customer – and market-centric approach, will enable QP Trading to respond with greater agility to the evolving needs of its customers, and to maximise the value of its portfolio in a dynamic market.
Minister of State for Energy Affairs and President/CEO of Qatar Petroleum, HE Saad Sherida Al Kaabi, made the announcement during a ceremony held virtually to celebrate the signing of QP Trading’s first deal with Singapore’s Pavilion Energy Trading and Supply.
Commenting on the establishment of QP Trading, Minister Al Kaabi said the new addition to Qatar Petroleum’s capabilities and reach is a very important step in reaffirming their belief in LNG’s economic and environmental value proposition and its cornerstone role in energy transition.
Under the agreement, QP Trading will deliver up to 1.8 million tonnes of LNG per annum for 10 years to Singapore, reflecting our commitment to respond to the needs of our customers, including supply security, price competitiveness, and flexibility.
HE Minister Al Kaabi also highlighted the unique environmental aspects of the agreement. He said the deal represents the first long-term LNG arrangement containing specific environmental criteria and requirements designed to ultimately reduce the carbon footprint of the LNG supplies, which is fully aligned with the country’s long-standing position in support of the environment.
He added that Qatar Petroleum is already implementing a series of projects and initiatives to reduce emissions and to capture and sequester more than five million tonnes of CO2 per annum by 2025, placing them firmly on the road to become a leader in the de-carbonisation of the LNG value chain.
Pavilion Energy Trading and Supply Chairman Tan Sri Muhammad Hassan Marican, said, that they too are delighted to enhance their strategic relationship with Qatar Petroleum. He added that the inaugural LNG cargo they imported into Singapore for downstream supply in 2018 originated from Qatar.
This partnership will strengthen our core Singapore market and our role as a global energy trader.
The virtual signing ceremony was also attended by HE Dr Tan See Leng, Second Minister of Trade and Industry in Singapore, together with other senior officials of Qatar Petroleum and Pavilion Energy Trading and Supply.
For updates and more information, visit qp.com.qa.