British Petroleum Co. plc has withdrawn from the $4.3 billion liquefied natural gas project based on Qatar's supergiant North field, handing back its 7.5% stake in the project to operator and principal shareholder Qatar General Petroleum Corp. BP cites intense competition for investment funds and its contention the project won't provide a good return.
Last year Qatargas signed a contract with Japan's Chubu Electric to supply 4 million tons/year of LNG starting in 1997 based on a $2 billion, two train LNG plant at Ras Laffan. The project also will require seven 125,000 cu in LNG carriers estimated to cost $1.8 billion. In addition, Qatar let a $770 million contract for a new port complex at Ras Laffan that would include berths for LNG carriers. The port development was not greeted with enthusiasm by some minority partners, and there has been criticism about project management structure.
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