Qatar LNG train delayed to 2010 from 2009-Conoco

Mon Nov 3, 2008 12:06pm EST
 
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ABU DHABI, Nov 3 (Reuters) - The start-up of a gas export facility in Qatar will be delayed to 2010 from 2009, a ConocoPhillips (COP.N) executive said on Monday.

A second facility would also be delayed, although would still start up in the planned year of completion in 2010, Ryan Lance, Conoco's head of exploration and production in Europe, Asia, Africa and the Middle East told reporters on the sidelines of an energy conference in Abu Dhabi.

The number of projects being undertaken simultaneously in Qatar, the world's largest exporter of liquefied natural gas (LNG) has led to a shortage of materials and labour and caused delays.

"The projects are a little bit behind, like all the projects in Qatar," Lance said.

Qatargas III will start up in 2010 rather than in November 2009 as previously scheduled, Lance said. Qatargas IV was also delayed but would start up in 2010, he said, the year initially planned, he said.

Both facilities will chill gas to its liquid form (LNG) for export on specially designed tankers and will have capacity of 7.8 million tonnes per year.

ConocoPhillips has a 30 percent share in the Qatargas III project, which will export mostly to the United States. State oil firm Qatar Petroleum owns 68.5 percent, while Japan's Mitsui owns 1.5 percent.

Qatargas IV was initially 30 percent owned by Royal Dutch Shell (RDSa.L), while state owned Qatar Petroleum held the rest. Marubeni (8002.T) bought an as-yet undisclosed stake in April 2007. The facility will export LNG to the United States and Europe.

Qatar is the world's largest exporter of LNG and aims to boost capacity to 77 million tonnes per year in 2010, up from around 38 million tpy now.

LNG production in Qatar is split between two companies, Qatargas and Rasgas. Both are majority owned by state oil firm Qatar Petroleum.

Qatar sits on the world's third-largest gas reserves.

Qatar is also one of the smallest oil producers in the Organization of the Petroleum Exporting Countries, pumping about 860,000 barrels per day (bpd) in October according to a recent Reuters survey. (Reporting by Simon Webb; writing by Luke Pachymuthu; editing by Anthony Barker)

 

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