10 November 2006
Doha - Al Khaleej Gas (AKG) plant at Ras Laffan will be providing gas to the first 'Gas-to-Liquids' (GTL) facility to be built and operated in Qatar, Mark Tresslar, AKG General Manager has said.

According to him, the AKG also provides fuel for the power plants in Ras Laffan Industrial City (RLC) that generate electricity and water to supply the industrial base in RLC in addition to the growing demand from commercial and residential customers in the country.

AKG is also supplying 'sales gas' to Mesaieed to meet the demand in the Southern part of the country.

The project is being developed under the terms of a Development and Production Sharing Agreement (DPSA) between Qatar and ExxonMobil Middle East Gas Marketing Limited (EMMEGML).

EMMEGML is the sole contractor under the DPSA. RasGas Company (RasGas) is operating AKG facilities according to a services agreement with EMMEGL.

The DPSA establishes the framework for the production of gas from the North Field and for the sale of up to two billion standard cubic feet per day (2 BSFCD) of lean gas to domestic customers as well as condensate and natural gas liquids, such as ethane, propane, butane, field condensate and plant condensate, produced along with the gas.

"AKG is the first plant built at Ras Laffan to produce and market pipeline gas for domestic customers. It is participating in the infrastructure-building necessary for projects such as petrochemicals, power plants and refineries by making sales gas and ethane available for others to benefit from", said Khalid Laram, AKG Deputy General Manager.

The project is being developed in phases to meet evolving domestic gas supply commitments. The gas from AKG-1 is used in both the Ras Laffan and Mesaieed Industrial Cities to meet the country's need for electric power and to provide feedstock for the world's largest gas-to-liquids (GTL) plant located in Ras Laffan Industrial City.

Phase 2 or AKG-2 will develop the remaining balance of gas rights and will supply sales gas to meet long-term domestic supply requirements, as well as additional commercial gas customers.

This phase is now in the EPC phase and will start in the summer of 2009. Once AKG-2 goes on line, the project will be complete and capable of meeting the two BSCFD demand of lean sales gas for use in the country's domestic market.

AKG currently has three customers, including Qatar Petroleum (QP), which purchases gas for use in Mesaieed Industrial City and to resell to QPower, Ras Laffan Power Company and Oryx GTL.

AKG is also building facilities to supply fuel gas to the Ras Laffan Olefins Company and Laffan Refinery and to handle LPGs recovered by the refinery starting in 2008.

© The Peninsula 2006