Qatar Petroleum and ConocoPhillips to develop new LNG project
Qatar Petroleum and ConocoPhillips have signed an agreement for the development of Qatargas 3, a large-scale liquefied natural gas (LNG) project located in Qatar servicing the US natural gas market.
The agreement provides the framework for the necessary project agreements and the completion of key feasibility studies.
"Our strategy is to diversify our market portfolio and the US market being, not only the largest gas market in the world but also the most liquid market, is an important step in that direction," said Chairman of Qatar Petroleum, Abdullah Bin Hamad Al-Attiyah.
Qatargas 3 is to be an integrated project, jointly owned by Qatar Petroleum and ConocoPhillips. It is to consist of the facilities to produce gas from Qatar's North Field, yielding about 7.5 million tons of LNG per year, in a new LNG train to be constructed at Ras Laffan Industrial City.
The LNG will be shipped from Qatar in a fleet of state-of-the art LNG carriers. ConocoPhillips will purchase the LNG and be responsible for regasification and marketing within the United States. Average daily sales volumes are expected to be approximately one billion cubic feet per day. Startup is presently anticipated to be in the 2008-2009 timeframe.
Optimization of all aspects of the project will be achieved under the feasibility studies required by the Heads of Agreement.
Qatar Petroleum was established in 1974 as a national corporation completely owned by the State of Qatar. Qatar Petroleum is responsible for all oil and gas industry processes in Qatar, including exploration and drilling for oil, natural gas and other hydrocarbon substances, production, refining, transport and storage of the aforementioned substances and any of their derivatives and by-products, as well as trading in, distribution, sale and export of these substances. — (menareport.com)
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