Qatargas today opened a new market for Qatari liquefied natural gas as Dubai Supply Authority (DUSUP) completed the commissioning phase of its new LNG terminal in Jebel Ali port. The commissioning was completed by the delivery of the first cargo via a Q-Flex vessel with LNG produced from Qatargas 2 and sold to Shell.
The resultant natural gas will be injected into DUSUP’s distribution system to supply its local customers.
In 2008 Qatargas, Shell and DUSUP signed a series of agreements under which LNG will be supplied to DUSUP primarily from Qatargas 4 from 2011.
Commenting on this milestone, Sheikh Khalid Bin Khalifa Al Thani, Chief Executive Officer, Qatargas, said: “We are proud of this remarkable accomplishment and of our relationship with Shell and DUSUP, especially as it comes weeks ahead of the State of Qatar’s grand celebration of achieving a combined LNG production capacity of 77 million tonnes per annum (mtpa). Qatargas, under the guidance and leadership of His Excellency Abdulla Bin Hamad Al Attiyah, Deputy Premier and Minister of Energy and Industry, continues to seek diversification in its markets, including those in the Middle East. Qatargas is well positioned to be a principal supplier of LNG to the Middle East.”
Sheikh Khalid added: “Shell and DUSUP are premier customers and this is an important milestone for the Dubai project. Qatargas is honored to have provided LNG to facilitate the cool down and commissioning of the Golar Freeze at Ras Laffan in September of this year and to have delivered the first cargo to Dubai.”
The LNG carrier Al Bahiya arrived into the port of Jebel Ali in Dubai on 29th November and berthed alongside DUSUP’s Floating Storage and Regasification Unit (FSRU) Golar Freeze, which is now permanently moored at the port. The FSRU technology is a recent innovation where an LNG vessel is refitted with a regasification facility on board the ship allowing it to carry out a similar function to an on-shore Receiving terminal/regasification plant.
In 2006, DUSUP also selected Shell as technical adviser and project manager for the development of the LNG facility. Shell continues to provide technical advice to DUSUP until the project reaches a steady operational phase.
“I am proud that Shell is part of this innovative market development, which cements Qatar’s position as the world’s leading LNG supplier and which will help underpin Dubai’s growth for years to come. We look forward to continuing to build a close relationship with both Qatar and Dubai over the long term,” said Andy Brown, Shell’s Executive Vice President.
Qatargas 4 is being built and will be operated by Qatargas on behalf of shareholders Qatar Petroleum and Shell. Qatargas 4 is on track for completion of major construction at the end of 2010 with ramp-up of LNG production expected in early 2011, reaching full capacity in 2011.
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Source: Qatargas, December 6, 2010;