DOHA - The State of Qatar, Qatar Petroleum (QP) and ExxonMobil Middle East Gas Marketing Limited, a wholly owned subsidiary of Exxon Mobil Corporation, yesterday announced the launch of Al Khaleej Gas (AKG) Phase 2. AKG 1 was launched earlier and started up in November last year.
When it goes on stream in 2009, AKG-2 is planned to produce 1,580 million cubic feet per day (mcfd) of North Field gas for supplying to the local market.
The launch ceremony was attended by H E Abdullah bin Hamad Al Attiyah, Second Deputy Premier, Minister of Energy and Industry and Chairman of Qatar Petroleum, Mike Fry, vice-president, ExxonMobil Development Company, Wayne Harms, president of ExxonMobil Middle East Gas Marketing Limited and ExxonMobil Qatar Inc, and the chairman and members of the AKG Management Committee, along with senior officials of onshore and offshore contractors, Qatar Petroleum, ExxonMobil Qatar Inc, and RasGas Company Limited.
AKG-2 is being developed to supply natural gas to domestic markets while recovering associated condensate and natural gas liquids. AKG-2 will develop 1,580 million cubic feet per day (mcfd) of North Field gas, and will supply 1,250 mcfd of pipeline sales gas to meet long-term domestic supply requirements at Ras Laffan and Mesaieed, in addition to 870 thousand tones annually of ethane as feedstock for future crackers.
AKG-2 will produce about 15 million barrels per year of field condensate and 1 million tones annually of natural gas liquids (propane, butane and plant condensate) for export. AlKhaleej Gas is being developed in conjunction with the Ras Laffan LNG Expansion Project in an attempt to maximize synergies between the Ras Laffan Liquefied Natural Gas Company Limited (3) and AKG-2 projects. AKG-2 start-up is scheduled for the latter half of 2009 and total investment for the project is more than $3bn.
Engineering, procurement and construction (EPC) of AKG-2 will be conducted by the same contractors utilised by LNG Trains 6 and 7, scheduled for start-up in 2008 and 2009. The offshore facilities contract was awarded to J Ray McDermott. These facilities include two wellhead platforms and jackets equipped with supporting facilities. The facilities will consist of two 9-slot offshore platforms (WHP# 10 and 11). Chiyoda-Technip Joint Venture (CTJV) received the contract for the onshore facilities, which includes feed-gas inlet, gas treating, liquids recovery, and fractionation operations. The onshore facilities will be constructed adjacent to other RasGas facilities in Ras Laffan Industrial City.
Commenting on this milestone development, Al Attiyah said, "Approval of the Subsequent Development Plan and the launching of AKG-2 today reflect another major achievement towards meeting the increased domestic demand for natural gas. This project represents another important step under the optimal utilisation of the country's hydrocarbon resources, including, for the promotion of domestic industry and development."
Fry said, "ExxonMobil is extremely proud of our partnership with Qatar Petroleum. We appreciate the confidence and trust placed in ExxonMobil to supply domestic gas demand. We extend our thanks to all parties involved in the conclusion of this major milestone."
AKG-2 is structured under the Development and Production Sharing Agreement the State of Qatar and ExxonMobil Middle East Gas Marketing Limited. Phase One of Al Khaleej Gas (AKG-1), with a capacity of 750 mcfd pipeline sales gas, began production in November 2005.
© The Peninsula 2006
