Shipping – biggest obstacle to resume Qatari LNG flows
QatarEnergy CEO Saad al-Kaabi has identified shipping logistics as the biggest hindrance to resuming LNG exports from Ras Laffan once the Strait of Hormuz reopens, underlining tight tanker availability and routing constraints may impact the recovery of one of the world’s largest LNG export terminals.
Qatar delays start of LNG expansion to end-2026
QatarEnergy has pushed back the start of its LNG expansion project from mid- to late-2026. Any delay is, however, tightly constrained by long‑term offtake contracts that bind when LNG deliveries have to begin.
Total, QatarEnergies break ground on Iraqi gas project
Construction for ‘ArtawiGas25’ – a first processing unit to recover associated gas from the Ratawi field in southern Iraq – has been started by TotalEnergies together with Basra Oil Company and QatarEnergies. Built at a cost of US$250 million, the facility will be expanded to eventually gather and process enough gas to fuel 1.5 GW of power gen capacity.
The project is part of set up to maximise the use of Iraq’s hydrocarbon resources by setting an end to the wasteful practice of flaring natural gas that comes as a by-product of extracting crude oil in Iraq’s southern Basra region.
Ratawi is a heavy oil field, situated onshore, which recovered just over 10.43% of its total recoverable reserves as of today. Peak production is expected in 2029. At current production rates, Ratawi currently accounts for approximately 2% of the Iraq’s daily oil output – as well as an unspecified amount of associated gas which will now be gathered and processed for use as fuel for generating electricity.
Gathering gas from three oil fields
The Gas Growth Integrated Project (GGIP), launched in September 2021, is a US$10 billion project designed to enhance the development of Iraq’s natural resources and improve the country’s electricity supply. Phase-1 of the gas processing plant is designed to recover 300 Mcf/d by eventually recovering gas being flared at three oil fields – enough to supply gas to 1.5 GW of power generation capacity.
TotalEnergies is the operator of the field and owns a 45% stake in the ArtawiGas25 processing unit, under construction for a total cost of US$250 million, while Basra Oil Company has a 30% stake and QatarEnergy owns the remaining 25%. The Qatari oil and LNG major is understood to be interested in replicating gaining know-how about gas processing and may well replicate lessons-learnt elsewhere in the Middle East.
Quest to replicate project across Iraq
The modular design of ArtawiGas25 could also pave the way for potential replication across other Iraqi oil fields. According to TotalEnergies, ArtawiGas25 will create up to 160 direct and indirect jobs for Iraqi nationals during construction phase and 30 jobs during operation phase.
The launch the ArtawiGas25 project gives the Iraqi people a “tangible insight into the benefits of the GGIP, which will provide more energy with less emissions,” said Julien Pouget, senior VP Middle East & North Africa, at Total Exploration & Production.
Through this project, the French oil major seeks to demonstrate its capacity to deliver valuable and fast-track solutions in accordance with the Iraqi government’s energy strategy and the country’s electricity needs. To that end, much of the processed gas has been sold forward to electric power producers in the Basra region while construction of a 1 GW solar park is due to commence in the coming weeks.
Gulf tensions rise as Saudi Arabia and Kuwait push Durra gas field plan as Iran threatens to start drilling first
Saudi Arabia and Kuwait have been pushing their claim in recent days to the offshore Durra natural gas field in the Arabian Gulf that is also being claimed by Iran and the Iranians have threatened to move in now and start drilling.
ExxonMobil posts record profits amid Russian expropriations and suing of EU over its ‘unfavorable’ tax grab
Exxon Mobil Corp., the leading global oil and gas company and LNG market operator, posted a record $56 billion net profit for 2022 and fourth-quarter earnings of $12.8Bln amid Russian expropriations while it is also being forced to sue the European Union over $1.3Bln of “unfavorable items” associated with additional taxes on the US shareholder-owned company.
Indian LNG growth story is rewritten as costs jump 40 percent and domestic gas production increases
Indian liquefied natural gas imports in the fiscal year from April 2021 to March 2022 declined by 3.4 percent, though still amounted to 350 cargoes even as costs jumped by 40 percent to almost $12 billion.
