JV snaps up latest Qatar LNG deal

Chiyoda and Technip are awarded US $4 billion contract to build two new liquefied natural gas trains at Ras Laffan City

  • E-Mail
By  Conrad Egbert Published  January 7, 2006

Engineering firms Chiyoda of Japan and Technip of France have signed a US $4 billion (QR14.6 billion) deal to build liquefied natural gas (LNG) facilities in Qatar. The deal involves the construction of two ‘trains’ — units where gas is liquefied — capable of producing 7.8 million tonnes of LNG a year by the end of the decade. The Technip-Chiyoda joint venture will carry out the engineering, procurement and construction of trains six and seven at the Qatargas plant in Ras Laffan City. Construction is expected to begin in February or March this year and is set to be completed by 2008. Hiroshi Kobayashi, senior executive vice president of Chiyoda said: “My understanding is that this project of $4 billion is the biggest project in our business [history].” A press statement said: “The Chiyoda-Technip joint venture is now responsible for building the world’s six largest LNG trains, all of which are key to Qatar’s strategic plan to become the largest global LNG supplier.” The contract was signed with Qatar Liquefied Gas Company, with Chiyoda holding a 60% stake and Technip the remaining 40%. Chiyoda said that it expected demand for LNG to increase, with production located not only in the Middle East but also in South America and Africa. “To give a sense of the changing demand, the global trend is that the demand for gas is increasing by nearly 10% per year, and for LNG, that figure is higher,” said Kobayashi. “The current [global] supply of 130 million tonnes could increase to 200 million tonnes in 2010 and 300 million tonnes in 2020,” he added. With the latest deal, the Technip-Chiyoda joint venture is now responsible for building the world’s six largest LNG trains, all of which are key to Qatar’s strategic plan to become the largest global LNG supplier. Last month, US Energy Secretary Samuel Bodman signed a 25-year agreement starting in 2008, under which Washington will import 25-30% of its LNG needs from Qatar. In the $14 billion strategic alliance, Qatar and the US are set to build the world’s largest LNG plant. Qatar’s giant North Field, which has reserves of more than 25 trillion m3 of natural gas, is the third largest of its type in the world.

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