Chiyoda/Technip close to third LNG deal

16 December 2005
The Japanese/French joint venture (JV) of Chiyoda Corporationand Technipis close to signing its third major liquefied natural gas (LNG) contract in the space of just a year. The signing of the combined Qatar Liquefied Gas Company (Qatargas) 3and Qatargas 4onshore package, targeted for mid-late December, would take the total value of engineering, procurement and construction (EPC) contracts won by the venture in the past 12 months to more than $11,000 million (MEED 23:9:05).

Qatargas 3 and Qatargas 4 are each planning one train of 7.8 million tonnes a year (t/y) as part of their respective integrated gas developments. Both trains 6 and 7 will use liquefaction technology supplied by the US' Air Products, which is also the technology provider for the two similar-sized trains under the Qatargas IIproject, now being built by the Chiyoda/Technip venture.

The venture has long been considered the sole candidate for the new two-train contract: its $3,500 million Qatargas II trains contract, signed a year ago, contained options for future train work at the Qatargas complex (MEED 6:5:05).

Construction of train 6 is expected to be completed by early 2009, followed six-12 months later by train 7. Tendering is under way for the associated offshore works for the two trains (MEED 14:10:05).

Train 6 is being handled by Qatargas 3, a 70:30 JV of Qatar Petroleum (QP) and the US' ConocoPhillips. The estimated $6,000 million integrated gas project will deliver gas into the US. The similar-sized Qatargas 4, a 70:30 venture of QP and the Royal Dutch/Shell Group, is targeting the US and European markets.

The Qatargas 3 and Qatargas 4 projects will be the last major LNG capacity additions under Doha's programme to triple LNG production to 77 million t/y by 2011. In addition to the Qatargas schemes, Ras Laffan Liquefied Natural Gas Company III (RasGas III)is executing its $13,000 million integrated project, which will also supply gas into the US. On 22 September, the Chiyoda/Technip team signed the RasGas III plant contract, valued at about $4,000 million, which also calls for the construction of two 7.8 million-t/y trains (MEED 23:9:05).

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