Barzan gas project a high priority for Qatar

"It is being built to ensure there is gas available for fuel to supply local power generation plants, which will ensure that the infrastructure growth, both industrial and domestic, continues to meet the overall vision of the state," he said. "The first phase of the project is being built to fuel local power generation projects."

Mr Dodds said the decision to stop development on the GTL project, designed to manufacture high-quality lubricants and fuels, made jointly by Qatar Petroleum and ExxonMobil, was consistent with ExxonMobil's extremely disciplined investment approach and the company's focus on maximizing the value of resources for both the host government of Qatar and our shareholders.

He told The Report: Emerging Qatar 2007, an invaluable guide to many facets of the country, published by the prestigious UK-based publishing, research and consultancy services organization: "The way we see opportunities in Qatar is to look at them in terms of the continuation of our work with our strategic partner, Qatar Petroleum, and our existing LNG and flowing gas ventures.

"At present we have four new LNG trains under development, including Qatargas trains four and five, as well as RasGas trains six and seven, which will be the largest LNG trains ever built, each with a capacity of 7.8m tonnes per annum of LNG.

"Also, we are building the Al Khaleeg Gas phase two project presently being implemented by the RasGas joint venture.

"I think we face the same obstacles as others in the industry. For example, today there is an especially heated market for contracting, services and labour. This is a global phenomenon, and as Qatar presently has many projects under construction, this means one of the biggest challenges is maintaining cost and schedule targets."