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Qatar’s Barzan gas project proceeds at $8.6 bln

Qatar to save $2.4-2.5 billion on project.

January 6, 2011 12:33 by

Qatar will go ahead with its delayed Barzan gas project to supply gas to the domestic market at a cost of $8.6 billion, the Gulf state’s oil minister said on Thursday.

Qatar initially had held back on the project due to high construction costs in 2010, Abdullah al-Attiyah told reporters in Doha.

“We had to hold back because in 2010 the tender was for $11 billion, and now we managed to save $2.4-2.5 billion by having it this year,” he said.

Initial talks took place in 2007 between Qatar Petroleum, which has a 93 percent stake, and oil major Exxon Mobil , which owns the remaining share.

“It took about 18 months from that point to finalize the deal,” said al-Attiyah.

The project is expected to produce 1.4 billion cubic feet of North Field gas a day, which will be used to meet the growing demand of the domestic market, he added.

“The first train will start in 2014 and the second in 2015.”

Qatar produces about 2.8 billion cubic feet of gas per day and plans to produce 4 billion by 2015, al-Attiyah said.

(Reporting by Regan Doherty; Writing by Amena Bakr; Editing by Jane Baird)

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