Qatar Petroleum and ConocoPhillips to develop LNG project
Posted: 13 July 2003
Qatar Petroleum and ConocoPhillips today announced the signing
of a Heads of Agreement for the development of Qatargas 3, a large-scale
liquefied natural gas (LNG) project located in Qatar servicing the
U.S. natural gas market.
The signing ceremony took place at the Qatari Embassy in Washington,
D.C., and was attended by Qatar's Minister of Energy and Industry
and Chairman of Qatar Petroleum H.E. Abdullah Bin Hamad Al Attiyah,
U.S. Secretary of Energy Spencer Abraham, and ConocoPhillips President
and Chief Executive Officer Jim Mulva.
The agreement provides the framework for the necessary project
agreements and the completion of key feasibility studies.
"We welcome this prospect of a long-term partnership with
ConocoPhillips," said H.E. Al Attiyah. "World-scale projects
such as these are crucial to the continued long-term economic development
of Qatar." H.E. Al Attiyah added, "Our strategy is to
diversify our market portfolio and the U.S. market being, not only
the largest gas market in the world but also the most liquid market,
is an important step in that direction."
Mr. Mulva said, "Qatar's abundant gas resources can provide
a secure and much-needed long-term supply for the growing U.S. gas
market before the end of the decade. In keeping with ConocoPhillips'
strategy, this project will be a significant near-term addition
to our portfolio, enabling our company to be a major player in helping
to meet the growing worldwide demand for clean energy."
Secretary Abraham said, "One of the clear messages from President
Bush's National Energy Policy is that U.S. energy security depends
on sufficient energy supplies to support U.S. and global economic
growth. The world's natural gas resources, including liquefied natural
gas (LNG), will contribute to the U.S. supply of the future and
help ensure our energy security.
"I offer my congratulations to both ConocoPhillips and to
Qatar in reaching this agreement, and I wish both parties success
with their project as it moves forward."
Qatargas 3 is to be an integrated project, jointly owned by Qatar
Petroleum and ConocoPhillips.
It is to consist of the facilities to produce gas from Qatar's
North Field, yielding about 7.5 million tons of LNG per year, in
a new, first-of-class LNG train to be constructed at Ras Laffan
Industrial City. The LNG will be shipped from Qatar in a fleet of
state-of-the art LNG carriers.
ConocoPhillips will purchase the LNG and be responsible for regasification
and marketing within the United States. Average daily sales volumes
are expected to be approximately 1 billion cubic feet per day. Startup
is presently anticipated to be in the 2008-2009 timeframe. Optimization
of all aspects of the project will be achieved under the feasibility
studies required by the Heads of Agreement.
Qatar Petroleum was established in 1974 as a national corporation
completely owned by the State of Qatar. Qatar Petroleum is responsible
for all oil and gas industry processes in Qatar, including exploration
and drilling for oil, natural gas and other hydrocarbon substances,
production, refining, transport and storage of the aforementioned
substances and any of their derivatives and by-products, as well
as trading in, distribution, sale and export of these substances.
Qatar Petroleum, through its majority-owned affiliate companies
is a leading world-class supplier of LNG in terms of production
and sales, including existing sales contracts to Japan, Korea, India,
Spain and other European destinations.
Total current installed capacity in Qatar is 14 million tons per
year rising to 26 million tons per year by the end of 2005, with
expansion plans to reach over 40 million tons per year by 2010.
For more information see http://www.qp.com.qa.
ConocoPhillips is an integrated petroleum company with interests
around the world. Headquartered in Houston, the company had approximately
56,600 employees, $80 billion of assets and $100 billion of annualized
revenues as of March 31, 2003.
For more information see www.conocophillips.com.
Posted by Richard Price,
Editor Pipeline Magazine
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