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Wed 16 Dec 2015 05:22 PM

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Qatar expects to start $10bn Barzan gas project in 2016

Gov't also says Ras Laffan 2 condensate refinery is expected to come on stream in Q4 of next year

Qatar expects to start $10bn Barzan gas project in 2016
(photo for illustrative purposes only)

Qatar expects to start operations at its Barzan gas project in 2016 with full output the following year, the Ministry of Development Planning and Statistics said on Wednesday.

The $10 billion project was originally expected to come online in 2014 and will serve Qatar's own growing energy needs.

"Hydrocarbon output will get a boost from Barzan, a new pipeline gas production facility scheduled to come on stream in 2016 and reach full capacity in 2017," the ministry said.

"Output from Barzan and an expected recovery in condensate production in 2017 should help to lift aggregate GDP growth above 2015's in both 2016 and 2017," it said.

The ministry also said the Ras Laffan 2 condensate refinery is expected to come on stream in the fourth quarter of 2016.

"The refinery will produce jet fuel and gas oil to be sold domestically, and export other products, including diesel, to Asian markets," the ministry said.

Qatar Petroleum signed an agreement with a consortium led by France's Total in 2013 to build the $1.5 billion refinery.

It will have a production capacity of 146,000 barrels per day (bpd) including 60,000 bpd of naphtha, 53,000 bpd of jet fuel, 24,000 bpd of gasoil and 9,000 bpd of liquefied petroleum gas.

The ministry said it expects crude oil production in 2015 to fall by about 6 percent and condensates output to fall by about 8 percent.

Benchmark Brent crude oil futures were under $38 per barrel on Wednesday, well below this year's high of nearly $70 hit in May.

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