Qatar has launched QR31bn Barzan Gas, a key project that will significantly meet the rising domestic gas demand.
Qatar Petroleum and ExxonMobil Barzan, a subsidiary of ExxonMobil Corporation, yesterday signed a Joint Venture Agreement (JVA) and a Development and Fiscal Agreement (DFA) for the Barzan Gas Project, which will supply about 1.4bn cu ft of gas a day, mainly to utilities and industrial units.
QP will have a 93% stake with ExxonMobil holding the remainder in the project, whose first gas flow is planned for 2014.
The project will be completed in two phases; Train 1 will come onstream in 2014 and Train 2 in 2015.
To be located at Ras Laffan, Barzan Project will be operated by RasGas. It will produce and process gas from Qatar’s North Field and supply sales gas to power stations and industries, ethane to the petrochemicals industry in Qatar, and associated liquid hydrocarbons for sale in the local and international markets.
The engineering, procurement and construction (EPC) contract for the project’s onshore segment has been awarded to Japan’s JGC Corporation while the offshore works have been given to South Korea’s Hyundai Heavy Industries.
The agreement was signed for QP by HE the Deputy Premier, Abdullah bin Hamad al-Attiyah, and for ExxonMobil Corporation by Andy Swiger, senior vice-president in Doha yesterday.
Al-Attiyah said the project would play a “critical and strategic role” in sustaining the high growth rate of the Qatari economy.
The Barzan project is scheduled to come on stream in 2014, in time to meet the accelerating local gas demand. A major portion of the gas to be supplied by Barzan Gas will be used by the power and water generation sector. In oil equivalent, the project will produce 300,000 barrels per day (bpd), which al-Attiyah said is “very significant”.
Describing ExxonMobil as Qatar’s “valuable partner”, he said the project will further strengthen QP’s successful partnerships with EM in the LNG ventures in RasGas and Qatargas and the Al Khaleej Gas projects.
Swiger said: “The Barzan project represents another major step in our long and successful relationship with Qatar Petroleum. This new domestic gas project will support Qatar’s economic growth and will create and deliver sustainable, long-term benefits for the Qatari community.”
