Qatargas: Setting the standards in the LNG market

May 8, 2017 in Infrastructure

In the competitive arena for energy supplies, liquefied natural gas (LNG) has become an increasingly important player in recent years.

At the forefront of LNG supply has been Qatargas, the world’s leading company and one with over 30 years of expertise.

Qatargas was established in 1984 and has pioneered the Liquefied Natural Gas (LNG) industry in Qatar, evolving into the largest producer of LNG in the world with an annual production capacity of 42 million tonnes per annum (MTPA) from its world-class facilities in Ras Laffan Industrial City, Qatar.

The company began production back in 1996, since when, Qatargas has successfully delivered cargos to 28 countries and is committed to meeting the world’s demand for safe, reliable and clean energy.

With defined processes aimed at delivering operational excellence, Qatargas is playing an important role in elevating the profile of Qatar, contributing to the economy and Qatar’s National Vision to ensure efficient energy supplies for the country, creating new markets and contributing to the local community.

In addition to the LNG facilities, Qatargas operates the Jetty Boil-Off Gas facility, the two Laffan Refineries (among the largest condensate refineries in the world), and the Ras Laffan Terminal on behalf of all participants.

The global nature of LNG supply is one fully embraced by Qatargas and earlier this year the company announced the signing of a side agreement to the existing Sale and Purchase Agreement (SPA) with Polish Oil and Gas Company (PGNiG).

In a press statement, the company announced that under the terms of the agreement, Qatargas will increase the volume of liquefied natural gas (LNG) currently supplied to PGNiG to two million tonnes per annum (MTPA). The new agreement will come into effect on 1 January 2018 and will run until June 2034.

Saad Sherida Al-Kaabi, Qatar Petroleum President and Chief Executive Officer, and Chairman of Qatargas Board of Directors, said: “We are very pleased that we have signed this agreement, which marks another milestone for us in Qatar as we continue to meet the requirements of our customers worldwide. I would like to take this opportunity to thank PGNiG for their trust in Qatargas.”

Sherida Al-Kaabi continued: “With more than 20 years of proven reliability, Qatargas continues to build a world-class reputation for safe and reliable LNG deliveries to our valued customers.”

Commenting on the new deal, Khalid Bin Khalifa Al-Thani, Chief Executive Officer, Qatargas, added: “The Qatargas Direction Statement clearly articulates our commitment to building strong, long-term relationships with customers. This commitment is a key differentiator in a competitive market, and our customers know that they can trust Qatargas to safely and reliably meet their energy needs.  Today, Qatargas looks forward to the next phase in our long-term relationship with PGNiG, and to the prospect of building an even stronger relationship with PGNiG as we increase our deliveries of LNG to Poland.”

The LNG will be supplied from Qatar Liquefied Gas Company Limited (3) (“Qatargas 3”), a joint venture between Qatar Petroleum, ConocoPhillips, and Mitsui & Co. Ltd., and will be delivered on board Q-Flex LNG vessels to the President Lech Kaczynski LNG Terminal in Swinoujscie, Poland, it was revealed.

Another very significant event took place in February 2017 when the Qatargas’ Laffan Refinery 2, built at a cost of roughly $1.5 billion, was inaugurated in a ceremony at  the Qatar National Convention Centre. The inauguration marked a major milestone in the expansion of refining capacity in Qatar as it doubles the existing production capacity.

This landmark project will result in the refining of 146,000 barrels per day of condensate from the North Field which is the largest non-associated natural gas reserve in the world. This refinery had started its operation at the end of last year with Qatargas announcing the commercial start-up of Laffan Refinery 2 on December 24.

With additional capacity coming on board, the total production capacity now stands at 292,000 barrels per day.

Laffan Refinery 2 produces low Sulfur Euro-V specifications products such as Naphtha, Jet-A1, Ultra low Sulfur Diesel (ULSD), Propane and Butane for local and international markets.

Alongside Laffan Refinery 1, this new facility is strategically important due to its role in diversifying Qatar’s energy mix. The project will meet crucial role to meet current and future needs of the domestic market of high-quality petroleum products.

“The priority will be given to the local market but anything above that will be for exports,” Salman Ashkanani, COO Refinery Ventures at RL QG HQ proclaimed.

“We have finished Laffan Refinery 2 within 39 months. This project has lot of improvements because of lessons learned from Laffan Refinery 1,” added Ashkanani.