Chiyoda/Technip wrap up Qatargas deal

06 January 2006
The Japanese/French joint venture of Chiyoda Corporation and Technip signed on 21 December the combined onshore package for the Qatar Liquefied Gas Company (Qatargas) 3 and Qatargas 4 integrated projects.
The Japanese/French joint venture of Chiyoda Corporation and Technip signed on 21 December the combined onshore package for the Qatar Liquefied Gas Company (Qatargas) 3 and Qatargas 4 integrated projects.

Worth $4,000 million, the engineering, procurement and construction (EPC) contract will cover the construction of two identical liquefied natural gas (LNG) trains each with capacity of 7.8 million tonnes a year (t/y) at Ras Laffan (MEED 9:12:05).

Both trains - the sixth and seventh to be built by Qatargas - will use liquefaction technology supplied by the US' Air Products. 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, which is owned 68.5 per cent by Qatar Petroleum (QP), 30 per cent by the US' ConocoPhillips and 1.5 per cent by Japan's Mitsui & Company. 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 debt financing package for Qatargas 4 is expected to be launched in early 2006. Royal Bank of Scotland is acting as financial adviser.

A 26-strong group of mandated lead arrangers (MLAs) was appointed in October on the $2,825 million commercial financing for Qatargas 3 (MEED 14:10:05).

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