Energy giant ConocoPhillips can easily claim expertise in the field of oil and gas thanks to a successful track record spanning more than 135 years. Today the third largest energy company in the U.S., ConocoPhillips is also an important global player, seeking out opportunities abroad in the world’s hydrocarbon hotspots.
The company’s relationship with Qatar dates back to 1997 when, through a 50% share in Chevron Phillips Chemicals, it collaborated with Qatar Petroleum (QP) to establish the Q-Chem I joint venture, a fully integrated ethylene/cracker polyethylene production facility. Last year, Chevron Phillips and QP’s Q-Chem II went on-line to produce high-density polyethylene (FDPE) and normal alpha olefins (NAO).
As for natural gas, Qatar’s exceptionally strong suit, ConocoPhillips is a shareholder in the Qatargas 3 Joint Venture, and looked on as a proud family member when the country celebrated the 77 MTA of LNG capacity last December.
ConocoPhillips holds a 30% share of the Qatargas 3 (QG3) venture, with QP retaining 68.5% and Mitsui the remainder. QG3’s mega-train, which is the 6th Qatargas LNG train located in Ras Laffan (the world’s largest LNG complex), began producing LNG in November last year.
With a capacity of 7.8 million metric tons per annum, Train 6 has an expected 25-year lifespan and additionally can produce 70 million barrels per day of liquefied petroleum gas (LPG) and condensate combined from Qatar’s North Field.
ConocoPhillips was instrumental in the appraisal drilling of the North Field that resulted in the ultimate allocation of the current blocks used by both the QG3 and QG4 Joint Ventures.
The construction of the two projects was executed simultaneously by a joint project management team composed of ConocoPhillips, Shell and Qatargas employees. Although each venture has its own mega train, they do, however, share offshore production facilities, pipelines, and onshore facilities.
For Jim Mulva, chairman and CEO of ConocoPhillips, Qatar has proved to be both an excellent investment and partner. “Qatar is a high priority country for ConocoPhillips. We have an excellent and growing relationship with Qatar, where we have successfully invested billions of dollars in LNG and petrochemical projects. During the five years of development work that this massive project required, we have enjoyed the opportunity to establish close, collaborative relationships with Qatargas, Qatar Petroleum and the people of Qatar, and now look forward to seeing QG3 provide clean-burning natural gas to markets throughout the world,” he said in a recent interview.
Mr. Mulva added that the Gulf country is conveniently located to both Asian and European markets and is rich in feedstock for petrochemicals, two major factors in reducing costs and raising competitiveness.
LNG from Train 6 is sold to high-value markets as well as several places where Sales and Purchase Agreements are already in place, including the United States and Canada. The principle delivery point in North America is the Golden Pass LNG terminal on the southeast coast of Texas. With a 12.4% ownership in the facilities and as a buyer of QG3 LNG, ConocoPhillips has firm rights to some 35% of the Golden Pass capacity of 15.6 million mtpa.
Inauguration of the Golden Pass terminal is taking place as part of the Invest in Qatar Forum currently on in New York.
Through its participation in QG3 and Golden Pass, ConocoPhillips has been part of a world-class joint venture team that develops offshore and onshore facilities of the highest caliber.
“The project will play an important role in further strengthening existing business relationships with global LNG buyers as well as building new business relationships,” said Mr. Mulva.
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