Qatargas 3

Ownership and Partnerships

• Qatargas 3 is an integrated project jointly owned by Qatar Petroleum (QP) with a 68.5% stake, ConocoPhillips with a 30% stake, and Mitsui with a 1.5% stake.

Project Objectives and Scope

• The project was designed to supply the growing US market with LNG. It benefits from shared facilities and contracts with the Qatar Gas II and Qatar Gas IV projects, including joint Engineering Procurement Construction (EPC) contracting, joint drilling, and joint procurement of the shipping fleet.

Contracts and Financing

• The project contracts were awarded in December 2005. The onshore EPC contracts were awarded to the Chiyoda Corporation and Technip France Joint Venture (CTJV). The offshore EPC and installation contract was awarded to McDermott International in June 2006.
• The project financing includes:
  • A $1.488 billion bank facility from a syndicate of 26 international, regional, and Qatari banks.
  • A $1 billion loan from the Japan Bank for International Cooperation (JBIC).
  • A $340 million facility guaranteed by the Export-Import Bank of the United States.
  • A $1.212 billion co-financing facility provided by a wholly owned subsidiary of ConocoPhillips.

Production Targets

• The project involves upstream gas production facilities to produce approximately 1.4 billion ft³ per day of natural gas, along with 70,000 barrels per day of Liquefied Petroleum Gas (LPG) and condensate from the North Field over the 25-year life of the project.

Facilities and Infrastructure

• The project includes the construction of onshore facilities for two large-scale LNG trains, each with a capacity of 7.8 million tons per annum.
• Offshore facilities are located 65 km north of Ras Laffan in Qatar’s North Field and include three 2,200-ton platforms, 33 gas wells, and two 65 km pipelines shared with Qatar Gas IV.

Construction Progress

• The installation of the third of the three topsides and pipeline risers was completed in October 2009, marking a major milestone. The first and second wellhead platform topsides were installed in June and August 2009, respectively. The offshore installation of wellhead platform jackets was undertaken in September and November 2006.

Market and Delivery

• The first LNG cargos from Qatar Gas 3 were expected to be delivered in 2010, with access to the growing US natural gas markets being a key element in the LNG marketing strategy. The project is positioned to provide a substantial, reliable, and stable supply of LNG to these markets.

Location

• The project is being constructed at Ras Laffan Industrial City, which is a major hub for Qatar's LNG production and export activities.

In summary, Qatargas 3 is a significant LNG project that is part of Qatar's broader strategy to expand its natural gas production and export capabilities, rather than an oil project.