Shell and QP sign LNG agreement

Qatar Petroleum and Shell have signed a Heads of Agreement for the development of Qatargas 4, a large-scale Liquefied Natural Gas project located in Ras Laffan City, Qatar.

Qatar Petroleum (QP) and Shell have signed a Heads of Agreement for the development of Qatargas 4, a large-scale Liquefied Natural Gas (LNG) project located in Ras Laffan City, Qatar.

Qatargas 4 is a joint venture between Qatar Petroleum and Shell with a 70% and 30% equity interest respectively. LNG deliveries are expected to commence around 2010-2012.

The Qatargas 4 project will comprise the integrated development of upstream gas production facilities to produce 1.4 bcf/d of gas and substantial quantities of associated liquids from Qatar’s North Field.

The project will also comprise a single LNG train yielding approximately 7.8 million tons per annum of LNG for a period of 25 years, shipping LNG to markets in North America and Europe.

“Upon completion, Qatargas 4 will broaden Shell’s LNG supply portfolio to include projects in seven countries, and will provide additional supplies for the growing LNG markets in North America and Europe,” commented Jeroen van der Veer, Chief Executive of The Royal Dutch/Shell Group of Companies.