Qatargas and Shell send first Qatargas 4 cargo to India
Qatargas and Shell today announced that the first cargo of liquefied natural gas (LNG) from the Qatargas 4 Project (70% Qatar Petroleum, and 30% Shell) has loaded. The cargo is en route to Hazira receiving terminal in India.
Qatargas, the company who pioneered the LNG Industry in Qatar, now has a production capacity of 42 mtpa of LNG, from its seven trains. This makes it the world's largest LNG producer.
Commenting on this achievement, His Excellency Dr Mohammed Saleh Al Sada, Minister of Energy & Industry for the State of Qatar & Chairman of the Board of Qatargas said: "Qatargas adds to the energy diversity of Asia, Europe and North America. The company continues to demonstrate its commitment to assisting in the diversification and the long-term mix of the world's energy supplies. I am delighted with the significant accomplishment of the first load-out from Qatargas 4 to India, which has significant potential as a market for LNG."
Qatargas' CEO Khalid Al-Thani added that: "Qatargas now has long-term agreements to supply countries in all four corners of the world. Our continued commitment is to supply our customers' energy needs safely and reliably over the years ahead. We are most thankful to His Excellency Dr. Mohammed Saleh Al Sada, Minister of Energy & Industry for the State of Qatar, whose guidance and direction has helped us achieve this remarkable milestone."
"Qatargas 4 represents another step in Shell's strategy of bringing natural gas, the cleanest-burning fossil fuel, to new and existing markets," said Peter Voser, Chief Executive Officer of Royal Dutch Shell plc. "It also strengthens our position as the leading international oil company in the LNG industry. We look forward to working closely together over the years ahead to create value for the State of Qatar and Shell."
Andy Brown, Shell's Executive Vice President, said: "Qatargas 4 opened up new markets for Qatari LNG in China and Dubai with agreements signed in 2008, and continues to look for further opportunities. It is therefore fitting that its first cargo should go to India, a market with significant potential for LNG. We are committed to working with Qatar Petroleum and Qatargas in delivering LNG to markets that require stable and reliable energy supply."
Qatargas operates the new Qatargas 4 project on behalf of its owners, Qatar Petroleum (70%) and Shell (30%).
The cargo sailed on the LNG carrier Al Ruwais, one of the new class of Q-Flex vessels owned by Qatar Gas Transport Company (Nakilat).
- Qatargas 4 was built in parallel with the identical Qatargas 3 project by a single team. The two projects share offshore, storage and other infrastructure and are also operated together, leading to synergies and greater efficiency.
- The upstream infrastructure consists of three unmanned platforms, up to 33 wells and two subsea pipelines, all of which are complete and are shared with Qatargas 3. Qatargas 4 produces 1.4 billion standard cubic feet of gas a day, delivering 7.8 million tonnes per annum of LNG and 70,000 barrels per day of condensate and liquefied petroleum gas.
- The LNG Qatargas 4 produces will be transported to market via a fleet of eight ships, each with a capacity in the range of 210,000 - 266,000 cubic metres, operated by Nakilat with the support of STASCO.
- The Hazira regasification plant (Shell 74%, Total 26%) in Gujarat, north-west India, supplies LNG to customers in northern India.
- India has significant potential as a market for LNG. Gujarat is one of the country's biggest industrial hubs and fastest-growing states that leads the way in India in gas-fired power generation.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this press release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this press release, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell's 20-F for the year ended December 31, 2009 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, February 20, 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may have used certain terms in this press release that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.