A flurry of activity is under way among world liquefied natural gas export projects.
Topping recent news, Yemen chose France's Total to take the lead role in developing Yemen's $5 billion, 5 million metric ton/year LNG project.
Other LNG news is dominated by the scramble between Oman and Qatar to line up potential customers for their competing LNG export projects and convert letters of intent to firm sales and purchase agreements.
Meanwhile, other developments center on LNG export programs in the U.A.E., Indonesia, and Malaysia.
YEMEN PROJECT
Negotiations soon will begin to set out operating conditions, form a group to invest in Yemen's project, and find the necessary financing, said Total-Yemen Pres. Francois Castellani.
He said the possibility of including Enron Corp., Exxon Corp., or Hunt Oil Co.-companies also vying for operatorship of the project-in Total's project could not be ruled out,
Plans include development of Maareb and Jawf gas fields to begin in 2001. Reserves are estimated at 15.75 tcf of gas.
Plans also call for spending $3 billion to lay two gas pipelines - one for domestic consumption and the other for transport to the LNG complex - and building a liquefaction plant and export terminal at Ras Omran. Another $2 billion will be spent to acquire a fleet of LNG tankers in support of the project.
Generally, target markets are in the Far East and Europe, but Castellani did not specify countries.
OMAN PROJECT
Oman apparently has gas reserves of 24 tcf, enough to supply a planned LNG export program as well as a proposed export pipeline. However, Middle East Economic Survey reported Sa'id bin Ahmed Al-Shanfari, Oman's minister for petroleum and minerals, said the country can fund only one project at a time.
Oman's plans involve a $6 billion, 6 million metric ton/year LNG export terminal at Shalilah, 200 km southeast of Muscat, to be developed in association with Royal Dutch/Shell Group and other companies.
The only contract signed for LNG from the project is a letter of understanding with China covering 2 million tons/year. Negotiations also are under way with buyers in Europe, Japan, and South Korea.
MEES said Al-Shanfari implied that failure to secure firm LNG sales contracts would make the Oman-India export pipeline the preferred option. The pipeline is under evaluation (see related story this page).
Al-Shanfari was quoted as saying his government will proceed with the LNG plan as soon as it signs sales and purchase contracts.
Oman hopes to sign more contracts by midyear. Project start-up is expected by 2000.
Oman's LNG project is owned 51% by the government, 34% by Shell, and 10% by a group made up of Total, Partex Oman Corp., Mitsubishi Corp., Mitsui & Co., and Itochu Corp.
Final decisions on the project are expected by mid-1996, with start-up slated for the end of the decade.
QATARI LNG
Gas supply for both of Qatar's LNG projects is to come from Qatar's portion of supergiant North field in the Persian Gulf, where reserves have been estimated at more than 225 tcf.
Enron earlier confirmed its affiliates Enron Development Corp. and Enron Oil & Gas Co. signed nonbinding agreements to participate in the LNG project but would not confirm other details.
Meantime, Qatar General Petroleum Corp. (QGPC) said that under a letter of understanding Thailand will import 2 million tons/year of Qatari LNG beginning in 1999.
Qatar would supply the gas through Ras Laffan LNG Co. Ltd. (Rasgas), a 70-30 venture of QGPC and Mobil Corp.
Rasgas is designed to produce 10 million tons/year of LNG. Rasgas recently signed tentative agreements to sell 2.5 million tons /year of LNG to India (OGJ, Feb. 6, p. 44) and 2 million tons/year to Turkey (OGJ, Jan. 16, p. 28). Negotiations also are under way for sales of 2.5 million tons/year to China.
Qatar's other LNG export project, Qatar Liquefied Gas Co. (Qatargas), signed an agreement to sell 2 million tons/year of LNG to seven Japanese utilities beginning in 1998. Buyers under the accord are Tohoku Electric Power, Tokyo Electric Power, Kansai Electric Power, Chugoku Electric Power, Tokyo Gas, Osaka Gas, and Toho Gas.
An eighth Japanese utility, Chubu Electric Power, which signed a sales agreement with Qatargas in 1992 covering purchase of 4 million tons/year of LNG beginning in 1997, also signed the latest letter of intent. Chubu holds an option under its original agreement to buy another 2 million tons/year.
Qatargas is a joint venture of QGPC 65%, Mobil and Total 10% each., and Marubeni Corp. and Mitsui 7.5% each.
U.A.E. EXPORTS
Tokyo Electric Power Co. (Tepco) expects to almost double its purchases of LNG from U.A.E. to meet its growing demand.
Tepco imported about 2.7 million tons of LNG from Abu Dhabi Gas Liquefaction Co. in 1993, a volume that rose to 3.7 million tons last year and is expected to climb to about 5 million tons by 1998.
Tepco's total LNG imports, including those from Southeast Asia, are expected to reach 16 million tons in 1998.
Adgas capacity doubled last year to 5 million tons/year under a $1 billion expansion project that entailed construction of the world's biggest LNG train. Another $600 million was earmarked to build four LNG carriers, two of which have been delivered to Adgas.
Tepco is the main Adgas client covered by a 25 year contract signed in 1977 and extended in 1993 under an accord that calls for Tepco to gradually boost its imports to become the sole Adgas buyer.
INDONESIA, MALAYSIA
Indonesia is focusing first on Japan as a major prospective customer for LNG sales from the massive, $35 billion Natuna offshore gas project it is developing with an Exxon unit.
Esso Natuna Inc. signed a contract with state owned Pertamina late last year (OGJ, Nov. 21, 1994, p. 30).
Indonesia, the world's biggest LNG producer, exported 26.47 million tons of LNG in 1994. Customer purchases break out as Japan 71%, 20% South Korea, and 9% Taiwan. Indonesia supplies about 45% of Japan's LNG needs.
Natuna is expected to boost Indonesia's LNG export capacity by 15 million tons/year when it starts up in 2010 and ultimately could reach capacity of 38 million tons/year.
Meantime, Taiwan's state owned Chinese Petroleum Corp. (CPC) is close to winding up negotiations for a 20 year contract to buy 2.25 million tons/year of LNG from Malaysia.
CPC expects to sign a contract in Kuala Lumpur by March. It would be Taiwan's first Malaysian LNG purchase.
CPC currently has a 20 year contract with Indonesia to buy 1.5 million tons/year of LNG. If the Malaysian deal goes through, CPC's imports of LNG could reach 3.75 million tons/year as early as this year.
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