Qatar Petroleum signs world’s largest gas project deal

QATAR Petroleum and ExxonMobil last week signed a deal for the world’s largest liquefied natural gas (LNG) project. The US$12.8 billion project is owned and managed by the Qatar Liquefied Gas Company Limited II (Qatargas II) joint venture.

  • E-Mail
By  Rhys Jones Published  March 6, 2005

QATAR Petroleum and ExxonMobil last week signed a deal for the world’s largest liquefied natural gas (LNG) project. The US$12.8 billion project is owned and managed by the Qatar Liquefied Gas Company Limited II (Qatargas II) joint venture. With more than US$7.6 billion in international financing in place, Qatargas II involves the delivery of 15.6 million tonnes annually (MTA) of LNG to the UK for 25 years, with the first deliveries expected in winter 2007/08. Qatargas II, which has established several affiliates to manage the various elements of its integrated project, is a joint venture between the state-run Qatar Petroleum (QP) with 70% and ExxonMobil with 30%. Qatargas II will further commercialise the large gas reserves of the Qatar North Field, which has estimated recoverable natural gas resources in excess of 900 trillion cubic feet or 9.3% of the world’s proven resources. Qatargas II will process 30 billion cubic metres of gas per annum and will produce 15.6 MTA of LNG, 6 MTA of condensate and 1.7 MTA of propane and butane. The deal further emphasises Qatar’s stature as the world leader in the LNG business. “Given its significance to the world gas market, the Qatargas II project reflects a major milestone in our capacity to meet the growing international demand for natural gas and hydrocarbons,” said Sheikh Tamim Bin Hamad Al Thani, Heir Apparent of the State of Qatar as he laid the foundation stone for the project. “This milestone venture will help us to harness the abundant natural gas resources available at our North Field and will go a long way in meeting the growing international demand for natural gas,” he added. The project involves the construction of two of the largest LNG liquefaction trains in the world (Trains 4 and 5). The new trains will be installed alongside the three trains of Qatar Liquefied Gas Company Limited (Qatargas I), so it will benefit from existing infrastructure within the Qatargas I plant. The record US$7.6 billion in financing for the project was raised by 57 different institutions, including Islamic financial organisations, making it the world’s largest energy financing deal. In December 2004, Qatargas II entered into agreements to secure US$6.5 billion in debt while South Hook LNG Terminal secured US$1.1 billion. Furthermore, Qatar has also signed a US$6 billion deal with Shell to supply LNG to North America and Europe. The UK-Dutch group will own 30% of the project, with Qatar’s state oil firm owning the rest.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code