In December 2010, the Qatargas 3 (QG3) joint venture’s enormous Train 6 liquefaction complex began producing its first drops of liquefied natural gas and the trickle soon grew into a flood. Strategically located at Ras Laffan, Qatar, Train 6 is both a key asset for ConocoPhillips and for the country of Qatar. It is also part of the world’s largest liquefied natural gas (LNG) complex, and the source of up to 7.8 million metric tonnes per annum (MTPA) of production.
ConocoPhillips has collaborated with Qatar Petroleum since 1997. The QG3 venture was formed in 2005 and is jointly owned by ConocoPhillips (30 percent), Qatar Petroleum (68.5 percent) and Mitsui (1.5 percent). QG3 construction was executed together with the Qatargas 4 project, a joint venture between Shell and Qatar Petroleum (QP), with each venture having one mega train but sharing offshore production facilities, pipelines and onshore facilities. Leadership was provided by a joint project management team composed of ConocoPhillips, Shell and Qatargas employees and supported by personnel from Qatargas, the Chiyoda Technip joint venture and other contractors.
"The QG3 and 4 projects have been a significant accomplishment," said Erec Isaacson, president, ConocoPhillips Qatar Business Unit. "Together, ConocoPhillips and Shell created a world-class joint venture development team and delivered offshore and onshore facilities of the highest quality."
A related project that underscores ConocoPhillips’ commitment to marketing Qatar LNG production is the Golden Pass LNG Terminal on the United States’ Gulf Coast – a joint venture among QP, Exxon and ConocoPhillips. It serves as the default receiving terminal for much of the LNG generated by QG3. The remainder is committed long-term to China National Offshore Oil Corporation for delivery in China, to PGNiG (an oil and gas company in Poland), and to spot cargos or short-term diversions to high-value markets. ConocoPhillips is working with Qatargas on a global basis to identify these high-value markets.
"During the five years of development work that this massive project required, we have enjoyed the opportunity to establish close, collaborative relationships with Qatargas, Qatar Petroleum and the people of Qatar and now look forward to seeing QG3 provide clean-burning natural gas to markets throughout the world," ConocoPhillips chairman and chief executive officer Jim Mulva said.
ConocoPhillips first signed a Heads of Agreement with the State of Qatar in 2003, followed by signing of Project Agreements in 2005. About this same time, ConocoPhillips began to temporarily transfer more than 110 key employees into the Qatargas 3 and 4 projects. In addition, countless employees worked the project from company offices in Doha, Houston and around the globe.
These employees have been actively transferring best practices and lessons learned from ConocoPhillips’ worldwide operations to make the project a success and help Qatargas achieve its vision of becoming the world’s premier LNG company by 2015.
"We see the project as an important addition to ConocoPhillips’ global portfolio and a key part of our relationship with Qatar," Isaacson said. "To some, our contribution may appear to be coming to an end. But rather, it is only the beginning, as we look forward to being a proactive business partner in the future, working side by side with QP and Qatargas to make all of the project’s operations as efficient and reliable as they can possibly be."