Qatari Barzan Gas Deals in 2010

Qatar will award the contracts relating to the Barzan Gas Project, a QP-ExxonMobil joint venture, in 2010, the Deputy Premier Abdullah bin Hamad al-Attiyah has said.

“The project contracts’ award should have been made some two years ago, but we delayed it to take benefit from falling prices. It was a wise decision. Now prices have sort of stabilised and we are confident of developing the project competitively”, al-Attiyah said at the Meed Qatar Projects Conference.

Al-Attiyah later said some 12 to 14 companies are bidding for the project. This shows the global interest in Qatar’s gas development.

“Barzan is meant to meet the rising local gas demand,” al-Attiyah said. Qatar’s demand for gas is estimated to shoot up to 4.25 Bscf/d by 2012, data indicate. Because of Qatar’s rapid economic expansion the demand for gas is soaring.

The Barzan Gas Project may provide about 1.5 Bscf/d of pipeline gas. The balance will be met by the existing Al Khaleej Gas I (AKG-1) with a capacity of 750 Mscf/d and the North Field Alpha (800 Mscf/d).

The move follows the award, in mid-November, to UK’s Royal Bank of Scotland (RBS) the mandate to raise the US$8 billionn the joint venture needs to develop the structure.

“QP expects to pre-qualify the contractors by the end of March and to invite bids in the second quarter of this year. Barzan will award the contract in the fourth quarter of 2010,” Meed said. Contractors expect Barzan to develop the structure in three phases.

“The winning bidder for the first phase will build two onshore gas processing trains by the end of 2013 with a combined capacity of 1.7 Bscf/d. The second phase will deliver a further 2 Bscf/d and third phase a further 2.5 Bscf/d,” Meed said. - Gulf Times