Major gas expansion in Qatar

A major gas expansion is under way in Qatar. Ras Laffan Liquefied Natural Gas Company Ltd (RasGas), a joint venture between Qatar Petroleum and ExxonMobil, has concluded the first phase of the world’s largest LNG Sale and Purchase Agreement (SPA) with Petronet Ltd of India. The conclusion of the negotiations triggers a period of gas-related projects beginning with the construction of additional offshore production facilities in the North Field and the building of the world’s largest and most cost-efficient LNG train at Ras Laffan Industrial City. The final Conditions Precedent for the SPA has enabled RasGas to sign two world-scale Engineering, Procurement and Construction (EPC) contracts. The first, with a joint venture consisting of Chiyoda Corporation, Mitsui Co. Ltd and Snamprogetti SpA, is to build a record 4.7 MMTA LNG liquefaction train. The second contract, with J. Ray McDermott Middle East (Indian Ocean) Ltd, covers the offshore and gathering facilities that will produce 800 million standard cubic feet per day of natural gas to supply the new LNG train along with some 30,000bpd of associated condensate. With this first phase of onshore and offshore development, ExxonMobil expects to book more than 350 million net oil equivalent barrels of proved reserves. The EPC contracts also provide terms for the construction of another 4.7 MMTA LNG train and the development of offshore and onshore facilities for domestic and export pipeline gas sales. The two new trains follow the existing two RasGas LNG trains that have a combined capacity of 6.6 MMTA.

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