Qatar starts LNG project for UK exports

NEW FACILITY: Qatar is starting up a delayed production facility that will export gas to Britain. Picture for illustrative purposes only. (Getty Images)

The world's largest LNG exporter Qatar is starting up a delayed production facility that will export gas to Britain, a spokeswoman for state-run Qatargas said on Wednesday.

The new gas plant will take Qatar's annual production capacity of liquefied natural gas (LNG) to around 38 million tonnes, from around 31 million tonnes. The plant, which chills gas to liquid form for shipment on specially designed tankers, was due to start last winter.

"We are in the process of commissioning train 4," said the spokeswoman. "Things are progressing well and we expect first LNG before the end of the year."

State-run Qatar Petroleum owns a 70 percent stake in the project, while Exxon Mobil holds the remaining 30 percent.

The gas plant, also known in the industry as a train, was delayed as the number of simultaneous energy projects under construction in the Gulf Arab state led to labour and equipment shortages.

An import terminal for the gas is under construction in South Hook, Wales. Exxon said last month that the terminal will start up in the third quarter.

The next train was due online in 2009, the spokeswoman said. Each train has capacity to produce 7.8 million tonnes per year of LNG.

Qatar sits on the world's third-largest gas reserves and aims to boost LNG capacity to 77 million tonnes in 2010. LNG production in Qatar is split between two companies, Qatargas and Rasgas. Both are majority owned by Qatar Petroleum.

Qatar is also one of the smallest oil producers in the Organization of the Petroleum Exporting Countries. The Gulf Arab state's oil output in June stood at around 850,000 bpd, according to a Reuters survey. (Reuters)

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