Qatar, Shell sign LNG agreement

March 1, 2005
Qatar Petroleum (QP) and Royal Dutch/Shell signed a heads of agreement (HOA) to develop a large-scale LNG project in Ras Laffan, Qatar.

By OGJ editors

HOUSTON, Mar. 1 -- Qatar Petroleum (QP) and Royal Dutch/Shell signed a heads of agreement (HOA) to develop a large-scale LNG project in Ras Laffan, Qatar.

The Qatargas 4 project, worth more than $6 billion, includes production of 1.4 bcfd of gas and associated liquids from supergiant North field off Qatar and a single LNG train with capacity of 7.8 million tonnes/year. The 25-year project will supply North America and Europe.

QP will hold a 70% equity interest in the project and Shell, 30%.

LNG deliveries are scheduled to begin in 2010-12.