Full steam ahead for Al-Khaleej gas project

04 April 2003
The upstream and downstream packages for the first phase of the Al-Khaleej gas (AKG-1) project have been formally awarded, following the late March launch of the estimated $1,100 million scheme by Qatar Petroleum (QP) and ExxonMobil Middle East Gas Marketing, part of the US' ExxonMobil Corporation. Phase 1 of AKG, previously known as the enhanced gas utilisation (EGU) project, will meet the gas requirements of new industry in Ras Laffan (MEED 29:3:02).

The upstream engineering, procurement and construction (EPC) package on AKG-1 will be carried out by Jebel Ali-based J Ray McDermott Middle East, while the downstream works will be performed by the Japanese/Italian/local venture of Chiyoda Corporation, Mitsui & Company, Snamprogettiand the Almana Group.

The two groups are the main contractors for the Ras Laffan Liquefied Natural Gas Company (RasGas)expansion project, which calls for the construction of trains 3 and 4. The AKG-1 packages were awarded as options on the RasGas contracts.

The AKG-1 project, which involves the installation of new gas treatment and natural gas liquid recovery units at the RasGas site, will produce about 750 million cubic feet a day (cf/d) of gas for customers in the industrial city, including Oryx GTL and the independent water and power project (IWPP). Other prospective customers include the proposed condensate refinery.

AKG is designed to produce 1,750 million cf/d of sales gas from the North field. The go-ahead of phase 2 is expected once a final agreement has been reached with Kuwait to supply the neighbouring Gulf state with 1,000 million cf/d of gas (MEED 17:1;03).

Given the synergies between trains 3 and 4 and AKG, RasGas is the operator for the AKG project. The client is ExxonMobil Middle East Gas Marketing, which signed the development and production sharing agreement for the project with QP in 2000.

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