THE NEW YORK TIMES: Shell and ExxonMobil in Qatar Deals: “…the Royal Dutch/Shell Group signed a deal to spend as much as $7 billion to develop Qatar's North Field, which is rich in gas. The deal is expected to yield about 7.8 million tons of liquefied natural gas a year for 25 years. North America and Europe will be the main customers when shipments start, which is expected in 2010 to 2012, Shell said.” (ShellNews.net) 28 Feb 05
By HEATHER TIMMONS
Published: February 28, 2005
LONDON, Two global oil companies have signed deals with the government of Qatar to produce liquefied natural gas, agreements that will result in the construction of new plants in the Middle Eastern country.
Exxon Mobil and the state-owned Qatar Petroleum signed a deal on Sunday that will involve $12.8 billion in investment by Exxon and other investors. The deal, known as Qatargas II, will provide Britain with 17.2 million tons of liquefied natural gas per year for a quarter of a century. Shipments are expected to start in 2007.
Separately, the Royal Dutch/Shell Group signed a deal to spend as much as $7 billion to develop Qatar's North Field, which is rich in gas. The deal is expected to yield about 7.8 million tons of liquefied natural gas a year for 25 years. North America and Europe will be the main customers when shipments start, which is expected in 2010 to 2012, Shell said.
The oil companies will build the plants that extract natural gas from the ground, and ships to transport it. Manufacturing liquefied natural gas involves cooling it to several hundred degrees below freezing, which makes it transportable. In both deals, Qatar Petroleum will be a 70 percent stakeholder.
Shell had already made other, smaller deals to develop Qatar gas fields, using a different technology. The country represents a "stable, transparent climate to do business," said Linda Cook, Shell's executive director of gas and power, in a telephone interview.
Total, the French oil company, is expected to sign a similar deal in Qatar on Monday that would be worth about $3 billion. A Total spokeswoman declined to comment on Sunday.
http://www.nytimes.com/2005/02/28/business/worldbusiness/28shell.html