Exxon And Quatar Petroleum Sign Agreement Over UK LNG Supply

Qatar Petroleum and ExxonMobil Corporation have signed a Heads of Agreement for the supply of Liquefied Natural Gas from Qatar to the United Kingdom. This agreement was signed by His Excellency Abdullah bin Hamad Al-Attiyah, Qatar Minister of Energy and Industry and by Harry Longwell, Director and Executive Vice President, Exxon Mobil Corporation.

The HOA covers the development of two LNG trains which are expected to be the largest ever built by industry. The feed gas for these trains will be sourced from Qatar's giant North Field, which has proven natural gas reserves in excess of 900 trillion cubic feet (tcf). Qatar Petroleum will have a 70% equity interest in the LNG trains, and ExxonMobil 30%.

The LNG trains will be built at the Ras Laffan Industrial City in Qatar. LNG shipments to the UK are scheduled to begin in the 2006/7 timeframe and extend over 25 years. ExxonMobil is currently investigating a number of potential sites in the UK for the import facility that will receive the LNG.

Minister Al-Attiyah said: "This agreement is a major achievement for the State of Qatar and highlights another successful joint effort between Qatar Petroleum and ExxonMobil to provide an increasing share of the world's growing demand for clean burning and environmentally friendly natural gas. It would not have been possible without the hard work and dedication shown by the employees of Qatargas, Qatar Petroleum and ExxonMobil."

Harry Longwell said that the project will supply the first LNG imports to the UK in 20 years, and will help ensure long-term reliable gas supply to that market. "ExxonMobil is already one of the UK's leading gas suppliers and a key participant in meeting the energy needs of the UK through our ongoing investment in oil and gas production in the North Sea. UK indigenous gas supplies are expected to decline in the near future, and by the end of this decade a shortfall is anticipated that will have to be met from other sources such as LNG imports."

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&to=http://www2.exxonmobil.com/corporate/' target=_blank>Exxon Mobil

&to=http://www.qp.com.qa/qp.nsf' target=_blank>Qatar Petroleum