Al-Khaleej Gas Project 2

Location

The Al-Khaleej Gas Project 2 is situated offshore in the Arabian Gulf, Qatar, specifically within the Rasgas Block C. The approximate coordinates are 26.5712, 51.8521.

Ownership and Operation

The project is operated by ExxonMobil, with ownership split between ExxonMobil (80%) and QatarEnergy (20%).

Project Phases

The Al-Khaleej Gas Project consists of two phases:

• Phase 1 (AKG-1): Started up in November 2005 with a capacity of 750 million cubic feet per day (mmcfd) of pipeline sales gas.
• Phase 2 (AKG-2): Sanctioned in July 2006 and officially opened in May 2010. This phase increased the total production capacity to 2 billion cubic feet per day (bcfd).

Production Details

• Gas Production: AKG-2 is designed to produce 1,250 mmcfd of sales gas, contributing to the total project capacity of 2 bcfd.
• Condensate and Liquids: The project also recovers associated condensate and natural gas liquids, including 61,000 barrels of field and plant condensate, 2,400 tons of propane and butane, and an estimated 2,500 tons of ethane per year for use as petrochemical feedstock.
• Peak Production: The field reached its peak production in 2015 and is expected to continue production until it reaches its economic limit in 2079.

Infrastructure

• Offshore Facilities: The project includes the fabrication and installation of two remote unmanned wellhead platforms (WH10 and WH11), jackets, and attendant supporting infrastructure. These platforms are connected to the RasGas Alpha Complex via subsea communications cables and intra-field pipelines.
• Onshore Facilities: The onshore components were constructed adjacent to other RasGas facilities in Ras Laffan Industrial City, including gas treating, liquids recovery, and fractionation facilities.

Contractors and Developers

• Engineering, Procurement, and Construction (EPC): The EPC contract for AKG-2 was executed by the Technip / Chiyoda Joint Venture (CTJV), with Chiyoda responsible for the front-end engineering and design (FEED).
• Offshore Platforms and Pipelines: J Ray McDermott Eastern Hemisphere was the EPCI contractor for the offshore platforms and pipelines.

Investment and Costs

• The total investment for the AKG-2 project was estimated to be more than $3 billion. The EPC contract alone exceeded $1.6 billion, and the contract for the offshore platforms and pipelines was valued at approximately $300 million.

Purpose and Market

The primary purpose of the Al-Khaleej Gas Project 2 is to supply natural gas to Qatar's domestic market, particularly for electricity production and industrial use. The project also supports the Ras Laffan (phase III) LNG expansion project to provide additional gas for export.

Reserves and Resources

As of 2021, the remaining reserves of the Al-Khaleej Gas Project 2 were estimated at 271.64 million cubic meters of gas.

Economic and Operational Impact

The project significantly contributes to Qatar's daily gas output, accounting for approximately 5% of the country's total gas production. The field's production will continue until it reaches its economic limit in 2079, based on current economic assumptions.