Mobil Corp. is pushing plans for two joint venture projects to export liquefied natural gas from Qatar.
The company disclosed last week that Ras Laffan Liquefied Natural Gas Co. Ltd., Mobil's venture with state owned Qatar General Petroleum Corp. (QGPC), has sent tender packages to contractors for engineering, procurement, and construction of gas liquefaction facilities to meet LNG supply commitments to Korea Gas Corp. (KGC).
Ras Laffan LNG also is contacting major lenders for financing.
Ras Laffan LNG is one of the two LNG projects in Qatar in which Mobil owns an interest. Mobil also holds a 10% interest in the Qatar Liquefied Natural Gas Co. Ltd. (Qatargas) project. The project is on schedule.
Elsewhere, state owned Nigerian National Petroleum Corp. (NNPC) predicts its proposed $4.2 billion LNG project with foreign partners could generate revenues of $37 billion during a 30 year export program.
RAS LAFFAN
The Ras Laffan LNG project is designed to produce LNG and condensate from Qatar's giant offshore North field for export. In addition to KGC, discussions are under way with potential buyers in Taiwan, Japan, Thailand, China, Turkey, and India.
Ras Laffan LNG, in which QGPC holds 70% and Mobil holds 30% interests, recently received the commitment of KGC on terms of purchase of LNG for Korea.
Front end engineering design for the Ras Laffan LNG project was awarded last year to Chiyoda Engineering & Construction of Japan for the onshore receiving and LNG manufacturing facilities, and to Hudson Engineering Corp., Houston, a subsidiary of McDermott Inc., for offshore facilities design.
QATARGAS
The first two gas liquefaction trains for the Qatargas project will be complete in late 1996, with a third train to be finished by 1999.
Qatargas has a contract to supply 4 million tons/year of LNG for 25 years from North field to Japan's Chubu Electric Power Co. Inc.
Qatargas also holds a contract to supply an additional 2 million tons/year of LNG for 24 years to seven other Japanese utilities: Tohoku Electric Power Co. Inc., Tokyo Electric Power Co. Inc., Kansai Electric Power Co. Inc., Chugoku Electric Power Co. Inc., Tokyo Gas Ltd., Osaka Gas Co. Ltd., and Toho Gas Co. Ltd.
Qatargas deliveries are to begin in 1997.
In addition to Mobil's 10% share, other Qatargas partners are QGPC 65%, Total of France 10%, and Marubeni and Mitsui, both of Japan, 7.5% each.
FACILITIES
Facilities for the Qatargas and Ras Laffan LNG joint ventures will be in an industrial area called Ras Laffan, about 44 miles north of Qatar's capital, Doha, on the Persian Gulf.
QGPC has built a $1 billion port facility at Ras Laffan to accommodate LNG and condensate tankers.
Arrangements have been made to charter seven LNG tankers, which are being built in Japan.
Chubu, Qatargas' main LNG customer, is building two additional power generation units, a receiving terminal, and related facilities.
Mobil cited estimates that current demand of 45 million tons/year of LNG in the Far East will grow 50% by the end of the decade.
NIGERIAN PROJECT
NNPC's quarterly journal Napetcor cited the $37 billion revenue figure and said, "The mere fact that this project can run and demonstrate loan repayment capability will change the whole economic picture of this country."
Even though some of the revenue will have to go toward repayment of loans to finance the project's cost, "the scheme will undoubtedly generate significant earnings for the nation," Napetcor said.
OPEC News Agency quoted the content of an article in the Napetcor journal.
Plans for the long delayed project surfaced in 1985. Its first LNG shipment is expected in 1999.
The project, scheduled at a site in Rivers state, is a joint venture of NNPC 49%, a unit of Royal Dutch/Shell 24%, France's Elf 15%, Italy's Agip 10%, and International Finance Corp. 2%.
Project components include a 200 km, 938 MMcfd gas transmission line, a gas liquefaction plant at Finima with capacity to produce 5.6 million metric tons/year of LNG, an LNG loading jetty, two storage tanks of 84,000 cu m capacity each, and seven LNG tankers.
The project holds LNG sales agreements with buyers in Italy, Spain, France, and the U.S. The agreements require further confirmation, given the project's delays.
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