News Release Details
Indian oil firms eye Qatar LPG pie
New Delhi 18-Sep-2007
<b>State-Owned Companies Like GAIL, IndianOil See Big time Business Opportunity.</b> State-owned oil firms, particularly gas utility GAIL, smell business opportunity in Qatar's focus on ramping up LPG (liquefied petroleum gas) and the impending completion of a gas-to-liquid project. Qatar is aiming to attain a capacity of producing 14 million tones of LPG by 2010 and will undoubtedly become the world's gas-to-liquid capital when Shell switches on the project.India's ambassador in Doha, George Joseph, has flagged the issue pointing out that Qatar has set up a new company Tasweeq to handle LNG (liquefied natural gas) and other byproducts of gas business such as condensate, sulphur and refined products. Qatar is a major global exporter of LNG, sending out 31 million tones of the gas in ships every year. Five million tones of this are supplied to India's Petronet under a long-term contract. Tasweeq will be the sole channel sing firm for LPG as it will buy up from all producers in the country and then export or resell domestically. Simultaneously, Qatar is set to switch on a facility to process gas condensates for fuel. The RasLaffan Condensate Refinery has a capacity of 146,000 barrels and will start operations in December.The thrust on LPG marks a change in Qatar's business focus. So far, it has been concentrating on becoming a natural gas exporter. But now it wants to tap the value chain in the gas and hydrocarbons business.This could provide opportunity for GAIL, which has experience in running LPG plants. To go a step further, it can also leverage its expertise in processing gas for petrochem to its advantage. There could also be opportunities for flagship refiner IndianOil, which is also an importer of LPG. Although oil executives said it was too early, there was agreement that they would be watching the development closely.
New Delhi 18-Sep-2007
<b>State-Owned Companies Like GAIL, IndianOil See Big time Business Opportunity.</b> State-owned oil firms, particularly gas utility GAIL, smell business opportunity in Qatar's focus on ramping up LPG (liquefied petroleum gas) and the impending completion of a gas-to-liquid project. Qatar is aiming to attain a capacity of producing 14 million tones of LPG by 2010 and will undoubtedly become the world's gas-to-liquid capital when Shell switches on the project.India's ambassador in Doha, George Joseph, has flagged the issue pointing out that Qatar has set up a new company Tasweeq to handle LNG (liquefied natural gas) and other byproducts of gas business such as condensate, sulphur and refined products. Qatar is a major global exporter of LNG, sending out 31 million tones of the gas in ships every year. Five million tones of this are supplied to India's Petronet under a long-term contract. Tasweeq will be the sole channel sing firm for LPG as it will buy up from all producers in the country and then export or resell domestically. Simultaneously, Qatar is set to switch on a facility to process gas condensates for fuel. The RasLaffan Condensate Refinery has a capacity of 146,000 barrels and will start operations in December.The thrust on LPG marks a change in Qatar's business focus. So far, it has been concentrating on becoming a natural gas exporter. But now it wants to tap the value chain in the gas and hydrocarbons business.This could provide opportunity for GAIL, which has experience in running LPG plants. To go a step further, it can also leverage its expertise in processing gas for petrochem to its advantage. There could also be opportunities for flagship refiner IndianOil, which is also an importer of LPG. Although oil executives said it was too early, there was agreement that they would be watching the development closely.