ExxonMobil signs up for massive LNG project

20 October 2003
Qatar Petroleum (QP) and the US' ExxonMobil Corporation signed on 16 October a heads of agreement (HoA) to undertake an integrated project to supply the US with 15.6 million tonnes a year (t/y) of liquefied natural gas (LNG), starting in 2008/09. Under the estimated $12,000 million project, the existing QP/ExxonMobil joint venture - Ras Laffan Liquefied Natural Company II (RasGas II) - will build two new trains, each of 7.8 million t/y, at Ras Laffan, acquire new LNG carriers and build a new regasification terminal in the US. Several sites for the regasification terminal are under consideration, the companies says.

The project is similar in nature and scale to the Qatargas IIproject, which is being developed by QP and ExxonMobil to serve the UK market (see Special Report, pages 29-58). It is also further evidence of the ambitions of Qatar LNG. The US' ConocoPhillipsis working with QP on a 7.5 million-t/y project, known as Qatargas III, which will also serve the US market (MEED 18:7:03). In addition, discussions are under way between Qatargas II and France's Total, which could see a third LNG train added to the development (MEED 26:9:03). If all the projects are implemented, they would add 46.5 million t/y of new capacity by about 2010 and require investment of over $30,000 million.

At present, total installed LNG capacity stands at about 14 million t/y. However, the figure is set to rise to about 25 million t/y in 2005, once the first two RasGas-II trains and a major debottlenecking programme at Qatar Liquefied Gas Company (Qatargas)are completed.

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