RasGas 2

Location and Geology

• The RasGas 2 conventional gas field is located in shallow water in Qatar, specifically within the RasGas Block B. The water depth in this area is approximately 210 feet.

Ownership and Operation

• The field is owned by a consortium that includes Daesung Group Partners, Exxon Mobil, Hanwha, HD Hyundai, Itochu, Korea Gas, LG, QatarEnergy, Samsung C&T, SK Innovation, Sojitz, and Sumitomo. It is operated by QatarEnergy LNG (formerly Qatargas Operating Co Ltd).

Production

• The RasGas 2 field has recovered about 45.78% of its total recoverable reserves as of the latest data. Peak production was achieved in 2013. Based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2086. Currently, the field accounts for approximately 9% of Qatar’s daily natural gas output.

Infrastructure and Development

• The RasGas operations are closely linked with the broader LNG infrastructure in Qatar. The gas produced from fields like RasGas 2 is processed and liquefied at facilities such as the Ras Laffan LNG Terminal. This terminal includes multiple trains, with trains 3, 4, and 5 being part of the RasGas II project, each with a capacity of 4.7 million tonnes per year (mtpa).

Partnerships and Agreements

• The RasGas II project, which includes the gas from RasGas 2, involves significant partnerships. Qatar Petroleum (now QatarEnergy) and ExxonMobil are the primary joint venture partners, with QatarEnergy holding a 70% stake and ExxonMobil holding 30%. There are also long-term Sale and Purchase Agreements (SPAs) with various buyers, including Petronet, Edison, Endesa, and Distrigas, to supply LNG to markets in India, Italy, Spain, and Belgium.

Economic and Market Impact

• The low cost of Qatari gas provides a significant competitive advantage. The project's breakeven costs are highly conservative, allowing it to remain competitive even in low oil and gas price scenarios. The project generates additional revenues from condensates and LPG, which have stable markets.

Expansion and Construction

• The development of the RasGas II and III projects involved the construction of new LNG trains and associated infrastructure. Companies like J. Ray McDermott have been involved in the expansion projects, including the installation of wellhead platforms and pipelines to support the increased production.

Strategic Importance

• The RasGas 2 field and the broader RasGas operations are crucial for Qatar's energy sector and economy. The natural gas from these fields is a primary contributor to Qatar's GDP and plays a central role in the country's foreign and domestic policy, including its energy export strategies to various global markets.