QATARGAS AND RASGAS TO MERGE

Qatar will merge state-owned liq­ue­fied nat­u­ral gas pro­duc­ers Qatargas and RasGas Co. Ltd ac­cord­ing to Saad Al Kaabi, CEO of Qatar Petroleum.

Qatar Today - - BUSINESS > OIL & GAS -

The tie-up of Qatargas and RasGas, Qatar's num­ber one and two LNG pro­duc­ers re­spec­tively, has been talked about for a num­ber of years stretch­ing back be­fore the oil price re­duc­tion. “Of course as an out­come of this cost re­duc­tion will be re­alised, it will make us more com­pet­i­tive in the mar­ket,” said Al Kaabi, adding that the move would save “hundreds of mil­lions of dol­lars”. The tran­si­tion, which will re­sult in a sin­gle com­pany called Qatargas, will take around 12 months to com­plete and will be­gin be­fore the end of this year.

Once the new struc­ture is in place, some ar­eas of the busi­ness could see job cuts, al­though the op­er­a­tional side of the plants will not be af­fected, said Al Kaabi. Qatargas is the largest LNG-pro­duc­ing com­pany in the world, with an an­nual out­put ca­pac­ity of 42 mil­lion tonnes a year, ac­cord­ing to its web­site. While QP owns a ma­jor­ity stake, global en­ergy firms in­clud­ing To­tal, Mit­sui & Co. and Cono­coPhillips also pos­sess small stake­hold­ings. RasGas has a pro­duc­tion ca­pac­ity of about 37 mil­lion tonnes a year. It is a 70/30% joint ven­ture be­tween QP and ExxonMo­bil.

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