Shell signed a heads of agreement (HoA) granting it a 30 per cent stake in the integrated Qatargas 4 scheme. The estimated $6,000 million-7,000 million project centres on the construction of a 7.8 million-tonne-a-year (t/y) train at Ras Laffan. Its output will be delivered into North America and Europe, starting in 2010-12. Detailed engineering and design work is expected to start in about a year's time (MEED 28:1:05).

Total also signed an HoA to take a 16.7 per cent stake in the second 7.8 million-t/y train on the integrated Qatargas II project, for which the main construction contracts were placed in late 2004. Under the estimated $1,000 million deal, subject to regulatory approval, Total will offtake 5.2 million t/y of LNG from the train for 25 years and market it in France, the UK and the US. The new shareholding structure on train 2 will be QP with 65 per cent, ExxonMobil Corporation with 18.7 per cent and Total with 16.3 per cent.

The other major LNG deal involved Ras Laffan Liquefied Natural Gas Company II (RasGas II)signing a 20-year sales and purchase agreement (SPA) with Distrigasto supply the Belgian company with 2.05 million t/y starting in early 2007.

SasolChevron's agreements with QP covered a series of GTL-related projects with a potential total value of $6,000 million. A memorandum of understanding was signed for a 65,000-barrel-a-day (b/d) expansion of the Oryx GTL plant, which is due to come on stream in early 2006 with capacity of 34,000 b/d. The two parties also signed a letter of intent to examine GTL base oil opportunities in Qatar. Finally, they agreed to assess the feasibility of an integrated 130,000-b/d GTL project. The next step in the development of the project, due to come on stream in 2010, will be the signing of an HoA.

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