Qatargas delivers first LNG cargo to China

Mr. Faisal M. Al Suwaidi, Chairman and Chief Executive Officer of Qatargas, said:

"This is truly an exciting development for Qatargas as we start to deliver LNG under our agreement. China represents a new market for Qatari LNG and we are proud to be able to deliver this first cargo safely and on time. Qatargas is very pleased to be playing an increasing role in providing stable energy supplies to China which has just celebrated its 60th Anniversary. LNG has a key role to play in helping governments around the world improve the diversity of their energy supplies. We are pleased with this development which will help to meet the growing demand for energy in China."

The cargo is being delivered at the Guangdong Dapeng LNG receiving terminal near the major Chinese industrial city of Shenzhen, utilizing the Q-Flex ship "Al Ghariya" which departed Ras Laffan Port on October 5th.

Al-Ghariya is part of Qatargas' integrated shipping fleet which consists of the world's largest state-of-the-art LNG vessels.

A formal unloading ceremony was held at the Guangdong Dapeng terminal to celebrate the arrival of the first cargo - it was attended by representatives from both Qatargas and CNOOC. This is the second cargo of LNG to be delivered to the People's Republic of China from the State of Qatar - Qatargas delivered its first spot cargo on a conventional sized vessel in September.

Qatargas executed a long term LNG sales & purchase agreement in 2008 with CNOOC to supply two million tones per annum (mtpa) of LNG to the People's Republic of China for a 25 year time period. This LNG will be supplied from Train 6 of Qatargas 3 joint venture between Qatar Petroleum, ConocoPhillips and Mitsui. Train 6 is anticipated to start producing LNG in 2010. Until this time LNG will be supplied from the Qatargas 2 Companywhose shareholders are Qatar Petroleum, ExxonMobil and Total.

Qatargas and CNOOC have been working together diligently since the execution of the agreement in order to finalize all of the ancillary requirements to commence first deliveries of LNG from Qatar to the People's Republic of China using Q-Flex vessels.

The State of Qatar is now the world's largest LNG producer and anticipates that China will become one of the world's largest gas markets. Qatargas currently has executed long-term contracts to supply a total of five mtpa of LNG to the People's Republic of China.