Paper on Qatargas 2 presented in world gas conference

Presenting the paper, Mr. Ching Thye Khoo, Chief Operating Officer of the Qatargtas 2 venture, said the two mega LNG Trains, that were set up as part of the Qatargas 2 project, were the result of the Vision of the Qatari leadership, both in seeing the market opportunities and taking the decisive steps to pursue them.

He noted that the Qatargas 2 project is unique in that it encompasses the entire LNG value chain linking all of the components from well to market in a single project.

The QG2 value chain starts with the wellheads located offshore in Qatar's North Field, continues on to Ras Laffan where the liquefaction, storage and export facilities are located, then to a fleet of 14 of the largest LNG ships ever built, and finally ends at the South Hook LNG Receiving Terminal in Wales, UK. The project employs more than 40 technologies new to Qatargas and utilizes economies of scale to achieve the cost reductions required to make Qatar's LNG competitive the distance to LNG markets.

Mr. Khoo noted that successful implementation of this mega project required simultaneous execution of several large scale projects in eight countries by a work force of over 35,000 people.

All components of the project had to converge at the same time to connect all of the links of the value chain. In addition, the large number of new technologies and first of a kind equipment applications required a very rigorous and structured approach from project inception through all of the stages of project execution, including extensive equipment testing regimes to ensure success and long term reliability.

He added that the first of the large LNG trains, Train 4, began producing LNG in March, 2009 and has already attained full capacity.

The second train, Train 5, produced its 1st LNG in September and production ramp up is in progress. To complement the trains, QG2's Offshore production facilities, large LNG ships, and the LNG Receiving Terminal in Wales have all been safely commissioned and are in operation.

Explaining the main challenges in implementing this project, Mr. Khoo highlighted the unprecedented size and scale of the project, high new technology content, integration of multiple projects and entities, strained resources and infrastructure in an overheated market environment and assembling the right team to manage scope and complexity.