Value: $10.3bn

Client

Qatar Petroleum

Saad Sherida al-Kaabi

Tel: (+974) 4 449 1433

Main contractors: Hyundai Heavy Industries

Gu Seok Kim, installation manager

Tel: (+974) 4 462 0620

To meet rising electricity demand, Doha is pushing ahead with plans to increase its natural gas production. This is being done through the offshore Barzan Gas Project.

The project is being developed in two phases and the overall scope involves two gas trains, with a combined capacity of 1.4 billion cubic feet a day (cf/d) of sales gas, being constructed by 2015. Any ethane and propane produced will feed downstream petrochemicals plants at Ras Laffan. The scope of the phase 1 development includes the two onshore gas processing trains.

The drilling platforms for Barzan are being constructed by South Korea’s Hyundai Heavy Industries, about 80 kilometres northeast of Ras Laffan Industrial City. The onshore facilities are being built by Japan’s JGC Corporation.

Unlike most of the gas produced from the North Field, the majority of the output at Barzan will be directed to the power and water sector. There will also potentially be some surplus for export.

The owner of the Barzan project is the local Barzan Gas Company. It is 93 per cent owned by state energy firm Qatar Petroleum and 7 per cent owned by ExxonMobil Barzan. The project is managed and operated by the local Ras Gas Company (RasGas), which is one of the world’s leading producers of liquefied natural gas (LNG). RasGas currently has the capacity to produce about 37 million tonnes a year of LNG, as well as supplying sales gas for the local market. It is 70 per cent owned by Qatar Petroleum and 30 per cent owned by ExxonMobil RasGas.

When the Barzan scheme comes onstream, RasGas will be the largest gas producer in Qatar. Barzan was the last project to be executed before the moratorium on operations within the North Field was introduced. This is expected to remain in place until 2015. As yet, there has been no indication from Doha that any new schemes will be initiated before that date.

Key dates

2010

The local RasGas announces the Barzan gas development scheme

January 2011

Hyundai Heavy Industry wins $90m deal for the offshore facilities

January 2011

Japan’s JGC awarded contract to build onshore gas-processing facilities

December 2011

Development reaches financial close including $3.2bn of equity and a $7.2bn debt tranche. This includes $850m from local Islamic banks

2015

Main contract completion due
Source: MEED