Qatar begins $14 billion LNG expansion at Ras Laffan city

28 new wells to be drilled in Qatar’s giant North Field, mainly to supply the United States

  • E-Mail
By  OGME Staff Published  December 4, 2005

Doha and Washington have launched a joint project to build the world’s largest liquefied natural gas (LNG) refinery, mostly for export to the US, in a US $14 billion strategic alliance between the two countries. Qatar Petroleum and ExxonMobil Ras Laffan (III) Ltd formed a joint venture, Ras Laffan Liquefied Natural Gas Company Ltd (RL3) during US Energy Secretary Samuel Bodman’s visit last month to Qatar. RL3 is a further expansion of the existing LNG production facilities operated by RasGas at the Ras Laffan Industrial city. This project will add two more trains to bring the total number of trains (production lines) operated by RasGas to seven, and is expected to increase RasGas LNG production capacity by more than 70%, said a company statement. “RL 3 is indicative of the success we have achieved in commercialising our substantial gas resources with our valued partner, ExxonMobil. We look forward to developing this world-class LNG project as we aggressively pursue Qatar’s vision to be the world leader for LNG development,” said Abdullah bin Hamad Al Attiyah, Qatar energy minister. The firm will drill 28 wells at Qatar’s giant North Field, which will then supply the two trains with natural gas. The North Field is estimated to contain natural gas resources in excess of 900 trillion cubic feet. LNG from the project will be delivered to targeted markets, principally the United States. Rex Tillerson, president of ExxonMobil, said that the LNG from Qatar will be delivered to the US Gulf Coast to a terminal that is currently under construction on the border between Texas and Louisiana. It will connect major pipelines from where it can be transported to any part of the country. “Our plan is have the terminal ready at the same time that the first train from RL3 will be built in 2008,” he said. Full-chain investment in RL 3 is estimated at nearly US $14 billion.This includes the design, construction and operation of two 7.8 million tonne per year (MTA) LNG Trains 6 and 7, and all other facilities associated with the storage, delivery and sales of approximately 15.6 MTA of LNG. The new LNG project will be developed in two consecutive phases, with Train 6 scheduled to begin production in the second half of 2008, and Train 7 anticipated to come onstream about one year later, added the statement. “The state of Qatar is very pleased with the success of this landmark financing, and we are well positioned to raise the full US$10 billion required for the expansion of RL II and 3 efficiently and at an attractive cost,” said Yousef Hussein Kamal, minister of finance.

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