Qatar Petroleum and Shell announce formation of the Qatargas 4 joint venture company
Today Qatar Petroleum (QP) and Royal Dutch Shell plc (Shell) announced the incorporation of Qatar Liquefied Gas Company Limited (4), a joint venture between an affiliate of QP (70%) and an affiliate of Shell (30%), which will own the Qatargas 4 project’s onshore and offshore assets. At the same event, this newly formed joint venture company signed a sale and purchase agreement (SPA) with a Shell affiliate as buyer of all the LNG volume produced by this large-scale project.
The SPA was signed on behalf of Qatargas 4 by Abdullah bin Hamad Al-Attiyah, Deputy Premier and Minister of Energy and Industry of Qatar and Qatar Petroleum Chairman, and by Linda Cook, Shell’s Executive Director Gas & Power. Also present at the signing was Faisal Bin Mohammed Al Suwaidi, Chairman and Chief Executive Officer of Qatargas Operating Company Limited.
The Qatargas 4 project comprises upstream gas production facilities to produce approximately 1.4 billion cubic feet per day of natural gas, including an average of approximately 24,000 bbl/d of LPG and 46,000 bbl/d of condensate from Qatar's North Field over the 25-year life of the project. The integrated project also includes a 7.8 million tonnes-per-annum liquefaction plant and the required LNG shipping capability. The main engineering, procurement and construction contract for onshore facilities was awarded in December 2005 and construction activities are progressing well in Ras Laffan. First LNG cargoes are scheduled for delivery around the end of the decade.
Qatargas 4 LNG volumes are intended to flow primarily into natural gas markets in the eastern United States. Shell has arranged for capacity at the Elba Island LNG import terminal as well as in the new Elba Express natural gas pipeline to receive and regasify the LNG exported to the United States.
Speaking at the event, Abdullah bin Hamad Al-Attiyah, Deputy Premier and Minister of Energy and Industry of Qatar said, “Today’s event marks the conclusion of all major commercial agreements for the Qatargas 4 project. This impressive undertaking will further cement Qatar’s position as the world’s leading producer of LNG and help us meet our production target of 77 million tonnes per annum. Qatargas 4 also exemplifies our successful and growing partnership with Shell and I strongly commend the project team for their efforts in reaching this milestone.”
Faisal Al Suwaidi, Chairman of Qatargas Operating Company and the CEO of Qatargas 4, added, “Today is truly a tribute to hard work and strong partnership. With the incorporation of the Qatargas 4 joint venture and the signing of the LNG SPA, the project continues to meet its targets and is well on its way towards a successful completion. Qatargas 4 truly represents the vision, dedication and excellence of the Qatargas family to world-scale LNG projects and fully aligns with our commitment to help fuel the world with clean energy.”
Linda Cook commented, “We are delighted to be part of such a remarkable LNG venture – the seventh LNG project around the world where Shell has an equity interest. As an integrated gas project, Qatargas 4 is another clear illustration of our ‘more upstream, profitable downstream’ strategy in action. Qatargas 4 epitomises the qualities and vision of both partners as well as Shell’s commitment to support Qatar as it consolidates its leadership position on the global LNG stage.”
Adding his comments, Jeroen van der Veer, Chief Executive Royal Dutch Shell plc, said, “We are very pleased to successfully reach this significant milestone in the development of Qatargas 4. Shell’s involvement in Qatargas 4 is fully aligned with our broader strategy of working in partnership with Qatar to develop its natural gas resources and further strengthens our well-established relationship. I believe the combined experience of Qatargas and Shell in the global LNG sector will strongly contribute to the successful delivery of this project.”
© 2007 Al Bawaba (www.albawaba.com)
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