Qatar’s Ras Laffan Liquefied Natural Gas (RasGas) company is among the frontrunners to become the liquefied natural gas (LNG) supplier for the Republic of China. In the running are also Australia’s LNG Pty and BP Gas of Indonesia, reported China Daily.
The winner of the $10 billion contract, issued by China’s National Offshore Oil Corporation (CNOOC), is to be announced by mid-2002. The project’s executives are considering awarding the supply contracts to more than one source to secure steady LNG import, industry sources told Energy24. The state-owned CNOOC is also likely to favor bidders willing to offer equity in the gas fields.
The contract covers the supply of three billion tons per year (tpy) of LNG, over a 25-year period. LNG delivery to a reception terminal in China’s southern Guangdong province is scheduled to begin in 2005. CNOOC and Britain’s BP have formed a joint venture for the construction of the $600 million terminal, which will process the imported LNG into gas.
RasGas is 63 percent owned by Qatar Petroleum (QP) and 25 percent by Mobil Corporation, while the remaining shares are held by the Itochu Corporation, Nissho Iwai Corporation and various Korean interests. The state of Qatar holds the world’s third largest proven gas reserves—after Russia and Iran—with approximately 500 trillion cubic feet.
Qatar Petroleum recently agreed in principle to supply the Kuwait National Petroleum Company with gas from its offshore North Field via pipeline, reported the official QNA news agency. The Gulf state also signed an agreement to deliver 500-750 million cubic feet of gas per day to its former rival, the neighboring Island of Bahrain. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
