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.
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.