Major Qatari Gas Project Faces Further Delays

Published at 10:00AM - 18/10/16

Qatar is postponing the start-up date for its Barzan Gas project due to a gas leak found in a gas pipeline, media sources reported.

The first phase of the project was due to start in November 2016 but has suffered repeated delays.

“There was a gas leakage in one of the project’s upstream pipelines, the impact of which is still being assessed. A start-up this year is unlikely,” sources close to the project have said.

Major Qatari Gas Project Faces Further Delays

The project, valued at US$10 billion (£8.17 billion) is a joint venture (JV) operated by RasGas with Qatar Petroleum and ExxonMobil, designed to meet rising demand in Qatar ahead of the World Cup in 2022.

Initially, it was due to start in November and boost gas production by up to 2 billion cubic feet per day before reaching full capacity in the first half of 2017.

Major Qatari Gas Project Faces Further Delays
Overview of the Barzan gas development

The delay is expected to be a major setback for the Gulf state, delaying hopes of much-needed sustained economic growth.

According to RasGas, most of the production coming from the Barzan project would be directed to the power and water sector.

Barzan to Turn RasGas into Largest Gas Producer Worldwide

Qatar Petroleum and ExxonMobil signed agreements to confirm the project in January 2011, while RasGas will manage the construction and operation of the plant.

The Barzan offshore platform is located northeast of the Ras Laffan Industrial City.

Offshore facilities have already been completed by Hyundai Heavy Industries, but onshore facilities are still being constructed, with Train 1 almost complete and Train 2 nearing completion.

Together, the trains are expected to supply approximately 2 billion cubic feet of gas per day.

When the two trains are operational, the total offshore production from all RasGas-operated facilities should reach around 11 billion cubic feet per day, making it the largest gas producer in the world.