The capacity expansion of the world’s largest liquefied natural gas (LNG) exporter, Qatar, has attracted a lot of interest, and oil and gas majors who are Qatar’s long-standing partners, as well as majors that would be new to Qatar’s LNG, are expected to bid for a lucrative share of the expansion project, Reuters reported on Wednesday, citing sources close to the preliminary talks.
Qatar announced last year plans to increase its LNG production capacity by 43 percent—from 77 million tons annually now to 110 million tons a year. The new export capacity, with projects to be completed in 2024, is expected to bring in billions of dollars more to the state coffers of the tiny gas-rich country, which is isolated by its Arab neighbors in a bitter feud in the Persian Gulf that has gone on for more than a year and a half now.
The four supermajors that hold stakes in Qatar’s existing LNG facilities—ExxonMobil, ConocoPhillips, Shell, and Total—are widely expected to bid in the tender that Qatar Petroleum is expected to issue in search of partners for the expansion, according to Reuters’ sources.
Other majors, including Chevron, Norway’s Equinor, Italy’s Eni, and a Chinese state-held company, are also considering bidding in the tender, the sources told Reuters. Chevron officials have visited Doha for talks in recent weeks and are mulling over bidding for a stake. Even Brazil’s Petrobras was considering bidding, but has recently decided against it, the sources say.
According to Jessica Brewer, Principal Analyst, Middle East Upstream Oil and Gas at Wood Mackenzie, Qatar’s new megatrains “will attract mega interest” and will be one of the “global standout opportunities in 2019.”
“The upstream segment alone is a world-class asset and operators will struggle to find other low-cost opportunities of this scale,” Brewer said this week.
“QP is unlikely to sole risk the development and will seek partners. However, suitors will need to prove they can add value to win a stake. We expect to see all the incumbents, primarily the Majors, jostling for position,” according to Wood Mackenzie.
By Tsvetana Paraskova
Find it in oilprice.com
Publicado por Juan Esteban Jaramillo Velez
Estudiante de Ingeniera de Petróleos de la Facultad de Minas de la Universidad Nacional de Colombia, sede Medellín. Presidente del European Association of Geoscientists and Engineers UNALMED Student Chapter.
- 10 de Febrero, 2019 / 1:00 pm
Natural gas flows into the three liquefaction and export plants on the U.S. Gulf Coast have begun to increase once again after a brief interruption prompted by adverse weather in the... Leer más
- 8 de Febrero, 2019 / 3:00 pm
It is the legally mandated purpose of a for-profit corporation to make money for its owners and to prioritize that goal above all else. So, it is no surprise that U.S. natural gas producers have... Leer más
- 4 de Febrero, 2019 / 11:00 am
Anadarko Petroleum Corp. reported that Mozambique LNG1 Co. Pte. Ltd.—the jointly owned sales entity of the Mozambique Area 1 Lda. coventurers—has entered into a 13-year LNG supply... Leer más
- 2 de Febrero, 2019 / 3:00 pm
Exxon and Qatar Petroleum will proceed with a US$10-billion expansion of their Golden Pass LNG import terminal in Texas to turn it into an export facility as well, Reuters reports, citing... Leer más
- 16 de Enero, 2019 / 2:30 pm
Mientras que el gigante de gas ruso Gazprom está trabajando para completar el gasoducto Power of Siberia que se espera comience a entregar gas a China en diciembre de 2019, otra... Leer más
- 8 de Enero, 2019 / 11:30 am
Exxon ha asegurado compromisos de compra a largo plazo para el gas natural licuado de su proyecto Rovuma en Mozambique, acercándose a una decisión final de inversión en una... Leer más
- 22 de Diciembre, 2018 / 4:30 pm
BP aprueba un importante proyecto de GNL transfronterizo en alta mar en África. La gran BP y sus socios anunciaron el viernes la decisión final de inversión para el proyecto... Leer más
- 4 de Diciembre, 2018 / 3:00 pm
La demanda de gas natural está aumentando rápidamente. La naturaleza relativamente limpia del combustible, la abundancia y la distribución geográfica lo convierten en... Leer más