Reuters: Qatar, Shell to sign $6 bln LNG deal on Sunday (ShellNews.net) 27 Feb 05

Sun Feb 27, 2005

DOHA (Reuters) - Gas giant Qatar and Anglo-Dutch major Royal Dutch/Shell will sign a $6 billion deal to supply liquefied natural gas (LNG) to global markets on Sunday, the chief executive officer of Qatargas said.

Faisal al-Suwaidi told Reuters the Qatargas-4 deal would be signed later on Sunday and that he hoped to sign a deal with France's Total SA on Monday for Qatargas-2.

Qatargas-4 will push state-run Qatar Petroleum (QP) towards its goal of becoming the world's top LNG producer by 2011 and fortify Shell's position as the product's top private supplier.

Total has been in talks for some time to join the Qatargas-2 LNG project, the world's largest. Qatargas-2 is 70 percent owned by Qatar Petroleum, with the balance held by U.S. major Exxon Mobil.

The total project for Qatargas-2 is $12.8 billion, involving delivery of 15.6 million tonnes a year to Britain for 25 years, with first shipments in winter 2007-8.

Industry sources have said Total would have access to around 5 million tonnes a year of that supply.

http://www.reuters.com/newsArticle.jhtml?storyID=7748569&type=businessNews