More FEED work let on Qatargas II

11 July 2003
The UK's MW Kellogghas been awarded the front-end engineering and design (FEED) contract for the planned receiving terminal in the UK, which will handle liquefied natural gas (LNG) deliveries from the Qatar Liquefied Gas Company II (Qatargas II)project. The receiving terminal is the second major FEED award on the project. In early June, Japan's Chiyoda Corporationbegan the FEED for the onshore facilities to be built at the Qatargas site at Ras Laffan. The award of a third FEED package - covering the offshore works in the North field - is expected over the coming two months, while the signing of a joint venture agreement between the Qatargas II shareholders, Qatar Petroleumand the US' ExxonMobil Corporation, is targeted by year-end (MEED 6:6:03).

QP and ExxonMobil submitted in April a planning application to Pembrokeshire County Council and the Pembrokeshire Coast National Park Authority in Wales to develop the new terminal on the site of the former Esso refinery at Hebranston. The planned terminal, expected to have capacity of 15 million tonnes a year (t/y), is to be built in two phases, with construction of phase 1 set to begin in mid-2004 and be completed by 2007. Phase 2 is scheduled to be completed in 2009 (see Oil & Gas Special Report, page 33).

The two Qatargas II trains will each have capacity of about 7.8 million t/y, making them the largest in the world. Feedstock will be sourced from a new upstream development in the North field, where Qatargas II has been allocated two new blocks.

Since signing a heads of agreement for the Qatargas II project a year ago, QP and ExxonMobil have completed feasibility studies and pre-FEED work for the entire project, which will also include a fleet of large LNG tankers. Royal Bank of Scotlandhas also been appointed as the financial adviser.

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