First LNG could come from 'Trains' 1 and 2

Vol 4, PW 24 (17 Jan 01) Midstream & Downstream

If Petronet-LNG does increase Dahej capacity to 10m t/y, it has a ready supplier in Ras Laffan Liquefied Natural Gas (RasGas) of Qatar.

By April this year RasGas hopes to award the EPC contract for construction of Trains 3 and 4, destined for India. "We need to award the EPC contract by April if we are to have enough time to deliver the gas," a company source tells Petrowatch, "First supplies to India are scheduled to begin in December 2003." It's a deadline familiar toPetronet-LNG and the Ministry of Petroleum & Natural Gas: in December 2003, India must complete construction of LNG receiving facilities at Dahej or face the prospect of defaulting on its 25-year Sales and Purchase Agreement with Petronet-LNG for the supply of 7.5m t/y to Dahej and Cochi.

RasGas tells Petrowatch first supplies to Dahej might not come from Trains 3 and 4. "We might send the balance from Trains 1 and 2," reveals the company, "Not all of it is going to Korea." On 20th August 1999, RasGas began supplies of LNG to South Korea under a 25-year SPA signed with the Korea Gas Corporation (KOGAS).

Trains 1 and 2 total 6.6m t/y but the contract with KOGAS is for only 4.8m t/y - a balance of 1.8m t/y. Not in doubt is that the North Field in Qatar has abundant reserves of gas! According to RasGas, the 25-year contract with KOGAS is equivalent to 118m tonnes.

"To accomplish this we need less than 2% of the reserves."