Qatar Petroleum, ExxonMobil Launch AKG-2

ExxonMobil Middle East Gas Marketing Limited, a wholly owned subsidiary of Exxon Mobil Corp., the State of Qatar, and Qatar Petroleum on Monday announced the signing of a development plan and the launch of the Al Khaleej Gas-Phase Two (AKG-2) project. This follows the completion of the initial stage of the project, AKG-1, which started up in November 2005.

When operational in 2009, AKG-2 is planned to produce 1,580 million cubic feet per day (mcfd) of North Field natural gas for processing to sales gas for domestic markets in Qatar, while recovering associated condensate and natural gas liquids.

AKG-2 is expected to produce annually approximately 1,250 mcfd of sales gas, about 15 million barrels of field condensate, about 1 million tons of natural gas liquids (propane, butane and plant condensate), and an estimated 870,000 tons a year of ethane for use as petrochemical feedstock. Al-Khaleej Gas is being developed concurrent with the Ras Laffan LNG Expansion Project to maximize synergies between the Ras Laffan Liquefied Natural Gas Co. Limited (3) and AKG-2 projects. Total investment for AKG-2 is expected to be more than $3 billion.

To commemorate the launch, a ceremony was held today in Doha attended by H.E. Abdullah bin Hamad Al-Attiyah, Second Deputy Premier, Minister of Energy and Industry and Chairman of Qatar Petroleum; Mike Fry, vice president of ExxonMobil Development Company; Wayne Harms, president of ExxonMobil Middle East Gas Marketing Limited and ExxonMobil Qatar Inc.; and other officials and diplomats.

The AKG-2 development will involve the construction of both offshore and onshore facilities including two wellhead platforms, gas treating and liquids recovery facilities, and fractionation operations. The onshore components will be constructed adjacent to other RasGas facilities in Ras Laffan Industrial City. Phase One of Al Khaleej Gas (AKG 1), with a capacity of 750 mcfd pipeline sales gas, began production in November 2005.