RasGas Identifies Securing LNG Supply as Biggest Challenge for Next Decade

Houston, Texas, April 17 (QNA) - RasGas Company Limiteds (RasGas) Chief Executive Officer, Hamad Rashid Al Mohannadi, said," Increasing demand for ecofriendly fuels and evolving LNG importing facilities will render natural gas the fuel of choice in the next decade". In a statement RasGas issued on Wednesday at the 17th International Conference and Exhibition on Liquefied Natural Gas (LNG 17), currently being held in Houston, Texas, USA, quoted Al Mohannadi as providing insights into the Global LNG Industry’s challenges and opportunities for the next decade. Speaking on a panel discussion titled, "Global Strategy Forum", on the inaugural day of the four-day convention Al Mohannadi while comparing todays LNG market to that of ten years ago, he noted how modern day projects are characterized by advanced technology, complexity, innovation and increasing scale. He elaborated saying, "LNG imports have been received by 27 countries and many new importers and exporters are on the horizon. Qatar, for example, has reached its goal of 77Mta and is now moving forward with new projects overseas through Qatar Petroleum International." Al Mohannadi cited the USAs drive for LNG vehicles as part of the rise in worldwide demand. He also cited Australia, Korea and the EUs policy-backed push for LNG-powered ships. "Demand appears to be secure on the macro scale," he concluded. Shifting to the supply side of the LNG market, Al Mohannadi noted that great challenges lie ahead. He said, "If we cannot satisfy this increasing demand, then the opportunity that LNG has to be the fuel of choice may be compromised." With current projects under construction facing significant delays, the market may remain tighter for longer. Additionally, projects in the planning stage are being challenged by tough economics and strong competition as industry costs soar. Al Mohannadi projected that "the market may ease by 2020." Al Mohannadi concluded his speech by encouraging stronger industry advocacy efforts and restating RasGas commitment to being a flexible, safe and reliable supplier of LNG. The triennial event brings together over 5,000 industry professionals as well as 10,000 trade visitors. This is RasGas fourth consecutive participation in the industry event for which it is also a platinum sponsor. RasGas Company Limited (RasGas) is a Qatari joint stock company established in 2001 by Qatar Petroleum and ExxonMobil RasGas Inc. RasGas acts as the operating company for and on behalf of the owners of the liquefied natural gas (LNG) projects RL, RL (II) and RL3 (Project Owners). With operations facilities based in Ras Laffan Industrial City, Qatar, RasGas principal activities are to extract, process, liquefy, store and export LNG and its derivatives from Qatars North Field. RasGas, on behalf of the Project Owners, exports to countries across Asia, Europe and the Americas with a total LNG production capacity of approximately 37 million tonnes per annum. For pipeline sales gas to the domestic market, RasGas also operates the Al Khaleej Gas Projects, AKG-1 and AKG-2 supplying approximately 2.0 billion standard cubic feet (Bscf) per day. RasGas is currently adding production capacity by building the Barzan Gas Project which when fully operational in 2015, is expected to supply approximately 1.4 Bscf of additional sales gas per day to the Qatari market to meet growing demand for energy at power stations and downstream industries. RasGas currently operates the Ras Laffan Helium Plant which was established in 2003 and came on stream in 2005. The plant extracts, purifies and liquefies helium from the North Field. The second helium plant is expected to enter production in 2013 bringing the total liquid Helium production capacity to 1.96 Bscf per year. (QNA)