QATARGAS SIGNS EPC CONTRACT FOR PLATEAU MAINTENANCE PROJECT 

 Doha - Qatar, 25 February 2010: Qatargas today signed an Engineering, Procurement and Construction (EPC) contract with TCJV, a joint venture between Technip and Chiyoda, to ensure that the production capacity of Qatargas 1 is maintained well into the future.

The Plateau Maintenance Project (PMP) has been initiated to meet the need for increased feed gas rates from offshore wells and to augment onshore plant processing facilities in order to handle the additional volumes. This project will enable Qatargas 1 to maintain its current production level of 10 million tonnes per annum (mtpa) of liquefied natural gas (LNG). The EPC contract with TCJV covers the design and execution of the onshore processing facilities scope of the PMP.

HE Abdullah bin Hamad Al Attiyah, Deputy Prime Minister and Minister of Energy and Industry, said: “This project is significant for the State of Qatar as it stems from the country’s strategy to achieve optimal utilization of the country’s natural resources. As the global LNG market continues to expand, we will continue pursuing our current expansion plans of LNG projects to raise the annual production capacity to 77 million tonnes by the end of 2010 reinforcing our position as the world’s largest exporter of LNG.”

The Minister added that such projects would allow the State of Qatar to make long term commitments to safely and economically supply gas to its customers in almost all parts of the globe including such distant markets as the United States.

Commenting on the contract, Mr. Faisal Al Suwaidi, CEO of Qatargas, said: “This agreement underscores our commitment towards achieving the target of 42 million tonnes of LNG production per annum from seven LNG trains by the end of 2010. The current production level from Qatargas 1 is roughly 10 mtpa. This three-year project will ensure that this production level is maintained for years to come.”

He added that the Qatargas 1 facilities were initially built to produce six  mtpa of LNG.  These facilities were upgraded in 2005 through a debottlenecking project which resulted in a new capacity of 10 Mtpa.   

Sheikh Ahmed bin Jasim bin Mohammed Al Thani, Chief Operating Officer – Engineering and Ventures added:  “In addition to the onshore component of the Plateau Maintenance Project, natural gas reservoir studies were completed to determine the scope of the drilling program required to increase feed gas rates.  A few modifications to the offshore processing facilities have already been carried out to support increase in production rates.”

A Qatargas project management team will now commence detailed engineering design which will be followed by site construction activities in Ras Laffan. The project is expected to be complete in 2013.

Senior executives from Qatargas and TCJV attended the contract signing ceremony held in Doha, Qatar.