Qatargas will become the sole entity for exporting Qatari LNG to the world from Monday, Jan. 1 following Qatar Petroleum's move on Tuesday in which it was designated as the only exporter of the state's crude oil, Qatar Petroleum announced Wednesday.
Following the merger of Qatargas and Qatar's second-biggest LNG producer, RasGas, the new entity will start to operate as the exclusive company to export Qatari LNG, according to Qatargas' press release.
“Our aim was to integrate the two companies’ [Qatargas and RasGas] resources and capabilities to create a truly unique global energy operator in terms of size, service and reliability. We also aimed to create higher value for our stakeholders, and enhance the competitive position of the Qatari gas industry," President & CEO of Qatar Petroleum Saad Sherida Al-Kaabi said in the press release.
The merger is set to bring in economies of scale. “It is important to highlight that this integration will ultimately save us around 2 billion Qatari Riyals [$549 million] in operating costs annually,” Al-Kaabi said.
Qatargas, the Qatar’s first grassroots LNG company, was established in 1994 and its first LNG vessel left the Ras Laffan Port bound for Japan on Dec. 24, 1996.
According to Al-Kaabi's statement in the press release, as of Jan. 1, all the ventures that were previously operated separately by Qatargas and RasGas will now operate under the new Qatargas company as a single entity to export Qatari LNG to the world, under a one shared vision, one management system, and one work culture.
Qatar Petroleum has a 65 percent share in Qatargas, ExxonMobil holds 10 percent interest, TotalFinaElf has 10 percent stake and Mitsui and Marubeni each hold a 7.5 percent share.
By Muhsin Baris Tiryakioglu
Anadolu Agency
energy@aa.com.tr