Qatar limits lng project delays and proves apx technology. The first megatrain the first train at the qatargas 2 project, inaugurated by the emir in april was around 18 months late. This report provides overviews of the financing structures behind five international projects that have arisen over the past decade. As the worlds premier lng company, qatargas has an established history in delivering such major projects and in operating various onshore and offshore facilities in the north field with a high degree of reliability and operational excellence. It is owned and operated by qatar liquefied gas company qatargas, a specialpurpose vehicle established to build, own and operate the lng plant. The original nfb accommodation, installed in 1995, was designed for the operational needs of qatargas trains 1 and 2. Qatargas is entrusted with executing this mega project on behalf of qatar petroleum. Pdf methods of financing of projects and oil and gas projects of. Qatar gas iii and iv lng project hydrocarbons technology. The qatargas i lng plant is located in ras laffan industrial city, qatar, and has been operational since december 1996.
Longer term, greater uncertainty surrounds the supplydemand balance the market will remain tight unless planned projects pass all hurdles and are built on time 3. The south hook lng terminal was inugurated last month and is receiving lng from qatargas 2, marking the completion of the worlds first fully integrated value chain lng project. The offshore accommodation expansion project was initiated to cater for the changes in the operational requirements following various expansion projects. Project finance involves the creation of a largely independent project company financed with equity from one or more.
The qatargas 3 commercial overview outlines the project development and commercial structure. The qataras4 commercial overview outlines the project development and commercial structure. Financing strategies for lng export projects usaee. How pf arrangement would evolve in the future, reflecting the developments of the underlying lng business environment 3. The qatargas 2 liquefied natural gas lng project financing, which closed late in 2004 set a new benchmark for major energy deals.
The ichthys lng project is the most highprofile partnership between total and inpex to date, but our relationship actually dates back to the 1960s. Qatargas, ecc vide decision dated 15th august 2014 has approved constitution of a lng price negotiation committee pnc comprising of secretary petroleum chairman, representatives of finance division, water and power and boi not below the rank of additional secretary, md sngpl,md ssgcl, md pso and md isgsl as secretary committee. Qatar stays top draw for banks petroleum economist. Pdf in this research, we consider the financial procedure of projects plan in the. The qatargas 4 project in qatar is a 1train lng development operated by qatargas on behalf of the shareholders. Qatargas 2 is a fully integrated north field lng project, inclusive of reservoir development, wellhead production, gas liquefaction, storage and loading. Project finance key transaction terms borrower ichthys lng financing type project finance. Qatargas ii lng project startup seen in q2 2008 reuters.
Project finance, debt ratio, longterm contracts, liquefied natural gas. Qatargas 3 is a fully integrated north field lng project, inclusive of reservoir development, wellhead production, gas liquefaction, storage and loading. It includes two world class lng mega trains train 4 and train 5 each with a capacity of 7. Rbc was a potential participant in a syndicated loan for a project financing venture in qatar. Lecture on project finance project finance leverage. Importance of coordinating project agreements and financial agreements. Natural gas is supplied to qatargas s lng trains from. Time will tell if this result signifies a permanent shift in the firms ranking. Abstract in december 2004, the qatargas ii joint venture between qatar petroleum70% and.
The qatargas 4 project started production in january 2011 and its first cargo was shipped to india in february 2011. First projects are likely to be equity financed but project financing should be able to follow on if the appropriate structure was to be. Qatargas 4 commercial overview report wood mackenzie. Section 2 gives an overview on project finance in the lng industry. Qatargas is a unique global energy operator in terms of size, service and reliability. The environmental manager at the royal bank of canada rbc has finally received the detailed environmental and social risk assessment of the qatargas ii lng project. Qatargas 3 and qatargas 4 lng projects break ground and target growing gas markets in the qatargas 3 and qatargas 4 lng projects break ground. This makes qatargas the largest lng producer in the world.
Meanwhile, the first train at rasgas 3 came on stream in august. Technip has signed with qatar liquefied gas company limited 3 qatargas 3 and the sponsors of the qatargas 4 project qatargas 4 a contract for two of the worlds largest liquefied natural gas lng trains. At inpex, we value totals project management expertise, which will help bring this project. Qatargas project management team has been working on detailed engineering design and procurement activities in technips paris office. This report has been prepared in accordance with the global reporting initiative gri standards. The qatargas project kohei hashimoto, jareer elass and stacy eller december 2004 prepared for the geopolitics of natural gas study, a joint project of the program on energy and sustainable development at stanford university. Lecture on project finance free download as powerpoint presentation.
Train 5 is getting ready for the commissioning and start up phases. The phase two of alkhaleej gas akg 2 project, launched in july 2006, will further contribute in the rapid monetization of the countrys huge gas reserve, the akg 2, scheduled to start up in the second half of 2009, will supply natural gas to domestic markets while recovering associated condensates and natural gas liquids. Qatargas is the worlds largest liquefied natural gas lng company. Commercial agreements and financing for qatar gas iv closed in july 2007. It produces and supplies the globe with 42 million metric tonnes of lng annually from across its four ventures qatargas 1, qatargas 2, qatargas 3, and qatargas 4. And now the state of the global bond market means further bond issuance in the programme. The project is well on the way to achieving expected start up by august 20, becoming another link in the chain leading to qatargas. Rbc financial groupthe equator principles in qatargas ii lng project case solution,rbc financial groupthe equator principles in qatargas ii lng project case analysis, rbc financial groupthe equator principles in qatargas ii lng project case study solution, environmental manager of the royal bank of canada rbc, finally got a detailed environmental and social assessment of project. Qatargas invites stakeholders to share their questions, comments, and. It explores the key issues facing the project, details the contracts and contains plant and field location maps and an fob breakeven analysis. How project finance was structured for the lng projects in the past any difference by region or change over time, and why. Records were set by qatargas 2 and rasgas 2 3 for size and debt load. It was developed jointly with qatargas 4, and both projects include identical 7. It was developed as a full supply chain project for the uk gas market, involving integration between lng supply, shipping and regas projects.
Qatargas 3 commercial overview report wood mackenzie. Financing lng projects and the role of longterm sales. Qatargas invites stakeholders to share their questions, comments, and concerns. The qatargas 3 project in qatar is a 1train lng development operated by qatargas on behalf of the shareholders. Qatargas 2 qatar qatargas 2 began operating in 2009 and was the worlds first fully integrated value.
The qatargas 2 qg2 project was the worlds first fully integrated value chain lng venture. Deals of the year, 200020 structured finance division. Qatargas economic, environmental, and social performance during the year. Overcoming crossborder financing challenges gas projects in east asia may 20. Lng output surge of 43% by 2024 to drive qatars next. The qatargas 2 project in qatar is a 2 train lng development operated by qatargas on behalf of its shareholders. The company operates 14 liquefied natural gas lng trains with a total annual production capacity of 77 million tonnes. The qatar liquefied gas company qatargas established its own liquefied natural gas lng plant to market what the product generated by the worlds largest natural gas reserve. This contract will be executed by a joint venture created by technip and. Qatargas has announced successful startup of its plateau maintenance project, which ensures the top lng producer, maintains its qatargas 1 production capacity at 10mn tonnes. Qatargas is a premier long term lng supplier with reliable and available supply today page 16 conclusions and qatargas will continue to meet the markets needs. Qatar gas ii project, ras laffan hydrocarbons technology. Qatargas 3 and qatargas 4 lng projects break ground and. Rbc financial groupthe equator principles in qatargas ii lng project case analysis, rbc financial groupthe equator principles in qatargas ii lng project case study solution, rbc financial groupthe equator principles in qatargas ii lng project xls file, rbc financial groupthe equator principles in qatargas ii lng project excel file, subjects covered energy.
The projects will benefit from the qatar gas ii studies and will have shared. These estimates are then compared with estimates including cost reductions through externai finance gearing. Qatargas announced the signing of a new, long term liquefied natural gas lng sale and purchase agreement spa with shell to deliver 1 million tons per annum of lng to the state of kuwait, commencing this year. The second train at qatargas 2 started up in september. Financing strategies for lng export projects april 20 4 other large. Rbc financial groupthe equator principles in qatargas ii. Qatargas state of qatar joint venture agreement 30% 70% contractors contractors contractors lng lng payments debt service. Scribd is the worlds largest social reading and publishing site. It is headquartered in doha, qatar, and maintains its upstream assets in ras laffan, qatar. Lng project financing started to take off in the mid1990s with the financings of qatari and omani lng projects, but jumped up a notch in 2004. The qatargas2 commercial overview outlines the project development and commercial structure. Under the 22year agreement, which ends in 2040, qatargas will supply lng from the qatargas 2 project, a joint venture between qp, exxonmobil and total, to. London, march 14 reuters the startup of the qatargas ii liquefied natural gas lng project is expected in the second quarter of 2008, qatar petroleum executive saad sherida alkaabi said on.1128 126 362 7 162 1253 786 1227 171 8 1225 1479 1257 327 1007 174 1028 512 327 1063 1254 334 1422 79 846 1192 728 242 967 366