Exxon & Qatar Pet. Acquire Stake in N. Adriatic LNG Terminal

ExxonMobil and Qatar Petroleum have acquired a 90 percent interest in the Edison Gas North Adriatic Liquefied Natural Gas (LNG) Terminal Project. Also, Ras Laffan Liquefied Natural Gas Company Limited II (RasGas II) and Edison Gas S.p.A. of Italy signed amended Sale and Purchase Agreements to increase LNG supplies from the initially agreed level of 3.5 million tons annually (MTA) to 4.7 MTA of LNG, commencing in 2007.

The North Adriatic LNG Terminal will be located offshore of the northern coast of Italy. The Terminal Agreements provide for a 90 percent interest for Qatar Petroleum and ExxonMobil, while Edison Gas S.p.A. will maintain a 10 percent share. QP and ExxonMobil's shares will be equally divided between the two companies, which will each own a 45 percent share of the terminal equity.

The agreements cover the development of an offshore gasification facility utilizing the most advanced technologies. Startup is scheduled for 2007 and it is anticipated that the front-end engineering and design contract (FEED) for the terminal should be signed within the next few weeks.

The North Adriatic LNG Terminal is expected to provide the Italian energy sector with the most modern state-of-the-art terminal facilities and to support the Italian government's efforts to secure the country's increasing energy demands in the long-term. The gas for this project will be sourced from Qatar's giant North Field, which has recoverable resources of more than 900 trillion cubic feet of gas.