Qatar approves Phase I, Al Khaleej gas project; ExxonMobil awards EPC

By OGJ editors

HOUSTON, Apr. 8 -- Qatar Petroleum Co. (QP) and ExxonMobil Middle East Gas Marketing Ltd. have launched Phase I of the $1.1 billion Al Khaleej Gas (AKG-1) project.

AKG will produce gas from Qatar's 900 tcf North field, recover associated condensate and natural gas liquids for sale, and market 1.75 bcfd of pipeline gas to be used as feedstock for new petrochemical plants to be built in the area and for other domestic and export customers.

AKG will be developed in phases to meet gas sales commitments, with AKG-1 to supply about 750 MMcfd to the Oryx gas-to-liquids plant—a joint venture of QP and Sasol Petroleum International (Pty.) Ltd.)—the Ras Laffan electric power plant, and other domestic industrial customers. First gas is scheduled for fourth quarter 2005.

ExxonMobil awarded a $200 million contract Mar. 31 to a joint venture of Chiyoda Corp., Mitsui & Co. Ltd.—both of Japan—and Italy's Snamprogetti SPA to proceed with AKG-1detailed engineering, procurement, and construction for AKG-1's 750 MMscfd gas separation and treatment plant facilities.

Scheduled for completion by the end of 2005, the facilities will be built adjacent existing RasGas LNG trains in the Ras Laffan area.

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