QP to Assume Sole Ownership of Qatargas-1

Qatar Petroleum (QP) said it plans to assume 100% ownership of the 10 million ton/yr Qatargas-1 LNG project when the current joint-venture agreement expires at the end of this year. The companies that will lose their ownership stakes are Exxon Mobil (10%), Total (10%), Marubeni (7.5%) and Mitsui (7.5%). QP currently holds 65%. Qatargas-1 launched Qatar as an LNG superpower, with the first of its three trains starting up back in 1996. Multiple sources say it has been a highly successful and profitable project. Qatar is a particularly important country for Exxon. Including Qatargas-1, the US supermajor has stakes in 12 out of 14 Qatari LNG trains and has relied on them for a significant portion of its cashflows since its initial investments. The next expiry will be the RasGas-1 joint-venture agreement in 2024, but the remaining nine joint-venture agreements won't expire until 2029-36 (see table). Meanwhile, industry attention is focused on Qatar's plans to increase its LNG production capacity in two phases, from around 78 million tons/yr today to 110 million tons/yr and then to 126 million tons yr (IOD Feb.8'21). QP has said it plans to start LNG production from the first phase by the end of 2025, with production from the second phase starting by the end of 2027. Companies interested in investing in the first phase of the expansion are due to submit offers by the end of May, with a selection expected to be made by year's end. However, QP has said repeatedly that it is prepared to proceed with the expansion alone if it is not satisfied with the offers it receives. Rafiq Latta, Nicosia, and Yousra Samaha, Dubai Partners in Qatar's LNG Trains Project Capacity