Qatar Petroleum and ExxonMobil Corporation have signed a Heads of Agreement (HOA) to supply liquefied natural gas (LNG) from Qatar to the USA for a term of 25 years. The deal covers the development of two large LNG trains with combined capacity of 15.6 million tonnes per annum (MTA) of LNG or about 2 billion cubic feet (bcf) per day to be supplied by Ras Laffan Liquefied Natural Gas Company (II). The feed gas for these trains will be sourced from Qatar’s giant North Field, which has proven natural gas reserves in excess of 900 trillion cubic feet (tcf). Over 26 tcf of the reserve will be dedicated to this project. Downstream of the plants the parties will be acquiring necessary transportation capacity and developing regasfication capacity in the USA. Total estimated investment including ships is about USD 12 billion.
The project is the largest LNG import project that has been announced for supplying gas to the USA. Delivery is targeted to begin in 2008/2009 and will extend for over 25 years. The LNG trains will be built at Ras Laffan Industrial City in Qatar by RasGas (II), a joint venture company between Qatar Petroleum and ExxonMobil that has been operating since 2001. Two existing trains currently produce over 6 MTA of LNG and two additional trains of 4.8 MTA each, are under construction. Qatar Petroleum will have a 70% equity interest in the project, and ExxonMobil 30%.
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