Qatar Likely To Accept Venezuelan LNG Offer

It is quite likely that Qatar will accept an offer by Venezuela to participate in its LNG project. The $2.7 billion Mariscal Sucre project which would produce gas reserves offshore Venezuela is currently being developed by PDVSA, Shell and Mitsubishi.

"We have been discussing a small participation in the project since June and now it seems almost certain that we'll take a 10 percent stake in the project," according to an official from Qatar's Ministry of Energy and Industry. The Qatari share will accrue after PDVSA, which currently holds a 60 percent stake in the project, cedes a portion of its holdings to Qatar Petroleum. Shell's stake is 30%, Mitsubish's stake is 8% and Venezuelan investors will hold the remaining 2%.

The Mariscal Sucre project is designed to produce 4.7 million tons per year of LNG, most of which is expected to go to U.S. customers.