Regional LNG: CPC, RasGas in LNG talks

A top-level delegation from Taiwan's Chinese Petroleum Corporation (CPC) is pursuing sales negotiations with Rasgas of Qatar, which is on course to become the world's top Liquefied Natural Gas (LNG) exporter by 2010, AFP quoted a report on Monday.

"The two parties have begun discussions to finalize the sales and purchase agreement," Rasgas said in a statement after CPC chairman Kuo Ching-tsai met Qatari Finance Minister Youssef Kamal in Doha on Saturday.

The CPC visit to Rasgas facilities follows agreement for Rasgas to supply 3 million tonnes per year of LNG for 25 years starting in 2008.

A heads of agreement was sealed in March contingent on CPC winning the right to supply the Ta-Tan power plant, one of the largest combined cycle gas turbine plants in the world, which it did in July.

CPC, a fully integrated gas and oil company based in Taipei, is expected to import 5.5 million tonnes of LNG by the end of the year.

RasGas is owned by the state-controlled firm Qatar Petroleum, which holds 63 percent of the outfit, with US oil giant ExxonMobil holding 25 percent, and the remainder held by Japanese and South Korean companies.

Meanwhile a report published yesterday in Doha said the emirate was set to be the world's biggest exporter of LNG by 2010 with an annual output of 30 million tonnes.

Projected capital expenditure of US$25 billion would almost double Qatar's LNG production in the next seven years, said the report by the Kuwait-based Global Investment House.(*)