Qatar Petroleum and Mitsui Sign HOA for Qatargas 3 Project

Qatar Petroleum (QP) has signed a Heads of Agreement (HOA) in Doha for Mitsui & Co., Ltd. (Mitsui)'s participation in the Qatargas 3 project located in Ras Laffan Industrial City, Qatar.

The agreement was signed on behalf of Qatar Petroleum by His Excellency, Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier, Minister of Energy and Industry of Qatar, Chairman of the Board and Managing Director, and by Mr. Shoei Utsuda, President and Chief Executive Officer of Mitsui.

The HOA sets out the principles for Mitsui to acquire a 1.5% equity participating interest in Qatargas 3 subject to certain conditions to be met before the year end. Mitsui will purchase up to approximately 10 million barrel of condensate per annum from Qatargas 3 for a period of 13 years. Mitsui will also proceed to discuss possible offtake of liquefied natural gas (LNG) from Qatargas 3.

His Excellency Abdullah Bin Hamad Al-Attiyah said that QP believes that Mitsui will contribute in exporting the additional volume of condensate to Japan and bring additional value to Qatargas 3. QP also envisages that Mitsui will play a crucial role in coordination with Japan Bank for International Cooperation (JBIC) in the financing arrangements for Qatargas 3. Mitsui's participation will further enhance the relationship between the State of Qatar and Japan with increasing Japanese energy security being provided through the stable supply of LNG and other petroleum products from Qatar.

Qatargas 3 is an integrated project covering the development of a new LNG train, with an annual LNG capacity of 7.8 million tons with the feed gas coming from Qatar's giant North Field. The sponsors of the Qatargas 3 project are presently Qatar Petroleum and ConocoPhillips. The LNG train will be built at the Ras Laffan Industrial City in Qatar. The start-up of the Qatargas 3 project is currently targeted for mid 2009.

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Posted 21/09/05

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