“Higher costs and rising prices have affected everybody in the
industry. But I am pleased to say that both Qatargas–III and
Qatargas–IV, a 70:30 joint venture between QP and Royal Dutch Shell
are on track, on schedule and within budget,” Stice said.
According to Reuters, Stice said the gas-to-liquid projects Conoco
was looking at, remains a possibility, despite ExxonMobil’s recent
dropping of a similar project due to spiralling cost.
“Nothing is off the table. Conoco would look at the project
again when Qatar raises the moratorium on new gas projects,” he
Qatar has frozen all new gas projects until 2012 to assess
reserves at its vast North Field.
Stice said the projects stayed on track due to accurate initial
cost forecasts and early purchases of raw materials and supplies for
Rapidly rising fees for oil service contractors, tight labour
supplies and raw materials scarcity have strained the budgets of big
energy projects around the world.
Rising costs forced ExxonMobil to drop plans to build the
world’s largest GTL project in Qatar last month. A number of gas
projects Qatar is executing simultaneously have further tightened
supplies and fanned costs.
Earlier, presenting the topic “Gas Price Volatility” Opportunity
or Threat” Stice said consumers might choose a different fuel if gas
prices were high. “We see high volatility during a period of high
price. Gas price volatility is therefore a threat,” Stice said.
Price volatility could be tackled by bringing more gas into the
market for which more production, storage and transportation
facilities were required. Peak US gas demand during the winter was
met from the stockpiles.
According to Stice, Qatar would be playing a key role in meeting
the increasing global requirements for LNG. Two key advantages for
Qatar are its huge reserves and destination flexibility.