The Scotsman: Shell Signs Deal to Build Gas Plant: “Oil giant Shell has signed a deal to build a liquefied natural gas (LNG) plant in Qatar that will help meet soaring worldwide demand for the fuel, it was announced today.” (ShellNews.net) 27 Feb 05
By Louisa Nesbitt, PA City Staff
Oil giant Shell has signed a deal to build a liquefied natural gas (LNG) plant in Qatar that will help meet soaring worldwide demand for the fuel, it was announced today.
The joint venture with state-run Qatar Petroleum will produce around 7.8 million tons of LNG a year for a period of 25 years.
It is expected to be welcomed by investors who have seen Shell downgrade its reserves five times in just over a year.
Shell has a 30% stake and Qatar Petroleum has the remaining share in the investment said to be worth 6 billion US dollars (£3.13bn).
Deliveries from the new plant in Qatar’s Ras Laffan City are expected to start from around 2010 and will go to locations including North America and Europe.
Firms are increasingly importing tankers of gas from Africa and the Middle East amid shorter supplies at home. The project represents Shell’s first LNG activities in Qatar, although it already has six similar operations elsewhere in the world.
Shell chief executive Jeroen van de Veer said it was proof of the strong relationship the company was building with Qatar to deliver “ambitious” projects such as this one.
Shell’s Texas-based rival Exxon Mobil already has LNG operations in Qatar.
Today’s announcement comes shortly after Shell posted record annual profits of £9.3 billion.
Last year’s reserves downgrades sparked the biggest crisis in the company’s history, leading to the departure of three senior executives and prompting moves to merge Shell’s UK and Dutch parent companies after nearly 100 years of separate operations.