QP to take 100pc ownership of Qatargas 1

State-owned Qatar Petroleum (QP) will become the sole owner of the Qatargas 1 LNG project from the start of next year, after opting not to renew its joint venture agreement with foreign partners.

Since its establishment in 1984, Qatargas 1 has been a joint venture between QP with a majority 65pc stake, Total and ExxonMobil with 10pc each, and the Japanese duo of Marubeni and Mitsui with 7.5pc each. It consists of three LNG trains with a total capacity of around 10mn t/yr.

"The takeover by Qatar Petroleum will conclude more than 25 years of successful operations ... from which the first ever Qatari LNG cargo was exported," QP chief executive Saad Sherida al-Kaabi said.

The Qatargas 1 facilities will continue to be operated by Qatargas on QP's behalf. The move to take full ownership comes as QP forges ahead with the expansion of its 77mn t/yr Ras Laffan gas liquefaction complex. The first phase will see liquefaction capacity rise to 110mn t/yr by 2025 through the addition of four trains.

First gas from the North Field East (NFE) project, which will feed the new trains, is expected in the fourth quarter of 2025. In February, QP awarded a $13bn contract to a joint venture of Japan's Chiyoda and France's Technip for new onshore facilities as part of the first phase expansion.

In the second phase, QP plans to increase Qatar's total liquefaction capacity to 126mn t/yr by 2027 by developing the North Field South (NFS) project. And al-Kaabi said late last year that there could be potential for further expansion beyond that in the future. "As history has shown, we don't expect to stop at 126mn t/yr," he said at the time. "We continue to strive to develop our natural gas resources and lead the way in the world's LNG value chain."

By Nader Itayim