Qatar Petroleum and Shell incorporate Qatargas 4

Qatar Petroleum and Shell incorporate Qatargas 4
BY A STAFF REPORTER /KHALEEJ TIMES 12 July 2007

DUBAI — Qatar Petroleum (QP) and Royal Dutch Shell yesterday announced the incorporation of their joint venture, Qatar Liquefied Gas Company Limited (Qatargas 4), in which an affiliate of the former holds a 70 per cent share while Shell's affiliate owns the remaining 30 per cent.

In a statement, the companies said the joint venture would own both the onshore and offshore assets of Qatargas 4, one of Qatar's major LNG (liquefied natural gas) projects.

"The event marks the conclusion of all major commercial agreements for the Qatargas 4 project," said Abdullah bin Hamad Al Attiyah, Qatar Deputy Premier and Minister of Energy and Industry. "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."

The newly-formed joint company also signed a sale and purchase agreement (SPA) with a Shell affiliate as buyer of all the LNG volume produced by Qatargas 4 project.

The project comprises upstream gas production facilities to produce some 1.4 billion cubic feet per day of natural gas from Qatar's North Field over the 25-year life of the project. It also includes a liquefaction plant with a capacity of 7.8-million tonnes per annum, and the required LNG shipping capability.

The statement said the main engineering, procurement and construction contract for onshore facilities was awarded in December 2005, and construction works are progressing well in Ras Laffan. The first LNG cargoes are set for delivery by end-2010.

It said Qatargas 4 LNG volumes are intended primarily for the natural gas markets in the US