Qatar Signs $6 Billion Gas Deal with Shell
Qatar Petroleum and The Royal Dutch/Shell Group of Companies signed a Heads of Agreement for the development of a large-scale Liquefied Natural Gas project located in Ras Laffan City, Qatar. The project is called Qatargas 4.
The agreement was signed on behalf of Qatar Petroleum by His Excellency Abdullah bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry of Qatar and by Jeroen van der Veer, Chief Executive of The Royal Dutch/Shell Group of Companies. Also present at the signing were Faisal Bin Mohammed Al Suwaidi, Vice Chairman and Chief Executive Officer of Qatargas, and Linda Cook, Executive Director Gas & Power, The Royal Dutch/Shell Group of Companies.
The Qatargas 4 project comprises the integrated development of upstream gas production facilities to produce 1.4 bcf/d of gas and substantial quantities of associated liquids from Qatar's North Field, a single LNG train yielding approximately 7.8 million tons per annum of LNG for a period of 25 years, and shipping of the LNG to the intended markets in North America and Europe. Qatargas 4 is a joint venture between Qatar Petroleum and Shell with a 70% and 30% equity interest respectively. LNG deliveries are expected to commence around 2010-2012.
"Qatar's goal to be the world's leader in LNG production is further secured through the development of large-scale projects such as this," said H.E. Al Attiyah. "We are very pleased to see Shell enter the LNG industry in Qatar and further contribute to the diversification of LNG markets, and we look forward to the successful delivery of this project," H.E. Al Attiyah added.
Jeroen van der Veer said: "This signing of the Qatargas 4 HoA today further demonstrates the strong partnership that Shell is building with Qatar to deliver ambitious projects such as this and the Pearl GTL project which is progressing well. These projects are fully aligned with Shell's strategy of 'more upstream and profitable downstream' through the development of integrated natural gas projects. The Qatargas 4 project will combine Shell's global leadership in LNG with Qatar's vision to become the world's largest LNG supplier. Upon completion, Qatargas 4 will broaden Shell's LNG supply portfolio to include projects in seven countries, and will provide additional supplies for the growing LNG markets in North America and Europe."
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