Qatar Petroleum recently declared its intention of not renewing the joint venture with Qatargas Liquefied Natural Gas Company Limited (QG1) effective from 31 December 2021 upon the expiry of the relevant agreements. The announcement spells that Qatar Petroleum will become the sole owner of 100% of the QG1 facilities and assets effective from 1 January 2022.
QG1, a joint venture between Qatar Petroleum (65%) and affiliates of Total (10%), ExxonMobil (10%), Marubeni (7.5%), and Mitsui (7.5%), was established in 1984. It forged to produce LNG and related products from Trains 1, 2, and 3. The trains are said to have a production capacity of around 3.3 million tonnes per annum (mtpa) each. The firm confirmed that Qatar Petroleum will not renew the QG1 joint venture upon the expiry of the relevant agreements on 31 December 2021.
Qatar Petroleum president and CEO and Qatar Minister of State for Energy Affairs Saad Sherida Al-Kaabi stated that the takeover by Qatar Petroleum will conclude more than 25 years of successful operations of QG1. He added that it was a momentous event that highlights Qatar Petroleum’s efforts to boost the utilisation of their natural resources to serve the world’s need for cleaner energy. The Minister added that he would like to thank their partners, ExxonMobil, Total, Marubeni, and Mitsui, for their efforts in the operation and development of QG1 over the past three decades. He added that each one of them had played an instrumental role in the success of QG1.
His Excellency Minister Al-Kaabi concluded stating that the event marked the start of the next chapter in QG1’s history. He added that they hoped that it will be even more successful than the last chapter. Plus, they were looking forward to serving customers for the next three decades from this world-class asset. QG1 facilities will continue to be operated by Qatargas (on behalf of Qatar Petroleum) with a production capacity of approximately 10 million tpy of LNG. Plus, QG1 will continue to play a significant role in supplying LNG to the world’s markets safely and reliably.
Furthermore, in the last month, Qatar Petroleum has taken a final investment decision (FID) for the North Field East project ($28.75bn) with a capacity of 33Mmtpa.
The 33mtpa LNG project is expected to expand Qatar’s LNG production capacity from 77mmtpa to 110mmtpa.