RasGas concludes “world’s largest” LNG sale to India

Petroleum News Alaska

Exxon Mobil Corp. said April 4 that Ras Laffan Liquefied Natural Gas Co. LTD, RasGas, a joint venture of Qatar Petroleum (70 percent) and ExxonMobil (30 percent), has concluded the first phase of the world’s largest LNG sale and purchase agreement with Petronet Ltd. of India.

Additional offshore production facilities will be constructed in the North field in Qatar, and an additional LNG train at Ras Laffan Industrial City.

Petronet is a joint venture between the Indian Oil Corp., Bharat Petroleum Corp., the Gas Authority of India Ltd. and The Oil and Natural Gas Corp. The sale and purchase agreement covers the supply of LNG for 25 years, with deliveries of 5 million metric tons per year to a new import terminal at Dahej, Gujarat State; plans are under development for delivery of an additional 2.5 million metric tons a year to a second import facility to be built at Cochin, Kerala State.

ExxonMobil said construction of the Dahej terminal began earlier this year and deliveries will begin upon completion of the terminal in late 2003.

A 4.7 million ton a year LNG liquefaction train and offshore and gathering facilities will be built; the contracts also provide terms for the construction of another similarly sized LNG train and development of offshore and onshore facilities for domestic and export pipeline gas sales. Two existing RasGas LNG trains have a combined capacity of 6.6 million metric tons a year.