QATAR - Qatar Liquefied Gas Co.

QatarGas has three trains at Ras Laffan, with the first one having come on stream in November 1996. The second train came on stream in January 1997. The third train came on stream in mid-April 1998. Each train had a nominal capacity of 2m t/y but could produce 2.5m t/y; but they were bottlenecked later so they now can produce 11m t/y. The three trains were built by Chiyoda Corp, based on the APCI process. Formed in November 1984, QatarGas, had cut costs by almost 25%. It consists of two JVs, one upstream and the other downstream:

QP holding 65% in both the upstream and downstream ventures.

Total holding 20% in the upstream JV, of which it is the operator under a PSA, and 10% of the downstream venture.

ExxonMobil holding 10% in the upstream venture and another 10% of the downstream element. ExxonMobil leads the downstream, with Mobil having replaced BP which left the venture in early 1992.

Mitsui & Co. holding 2.5% in the upstream and 7.5% in the downstream.

Marubeni Corp. holding 2.5% in the upstream and 7.5% in thedownstream.

Chubu Electric is the main client, having signed a 25-year contract to take 4m t/y. The LNG is used for its power plants at Nagoya. Its option of buying another 2m t/y was ceded temporarily in late 1994 to seven Japanese utilities which signed a 25-year purchase deal on Jan. 29, 1995: Tohoku Electric (520,000 t/y); Osaka Gas  (350,000 t/y); Tokyo Gas (350,000 t/y); Kansai Electric (290,000 t/y); Tokyo Electric (200,000 t/y); Toho Gas (120,000 t/y); and Chugoku Electric (120,000 t/y). They began receiving QatarGas LNG from mid-1999.

The third train and a debottlenecking of all three units enabled QatarGas to meet its commitments to Chubu, the above clients as well as have a surplus of LNG sold on spot basis. To make QatarGas viable in view of low oil prices in 1997/98, the partners resolved to reduce costs, secure good financing terms and get the buyers (see a detailed background in Vol. 61, Gas Market Trends No. 11).