Total may bring Qatar LNG to U.S. via Gulf terminal
Mon Sep 6, 2004 11:55 AM ET
reuters.com
By Marguerita Choy
PARIS, Sept 6 (Reuters) - French energy giant Total (TOTF.PA: Quote, Profile, Research) plans to bring liquefied natural gas from Qatar to the United States, where it is looking at investing in an import terminal on the Gulf Coast, a spokesman said on Monday.
The Total spokesman confirmed that the French firm has signed an option to buy the rights for 20 years to one billion cubic feet per day of regasification capacity from U.S. developer Cheniere Energy 's (LNG.A: Quote, Profile, Research) planned 2.6 billion cubic feet per day Louisiana facility.
The project would be Total's first investment in an liquefied natural gas (LNG) import terminal in the United States, where gas demand growth is forecast to outstrip stagnant production.
"The LNG will come from our projects worldwide, primarily from Qatar," the Total spokesman said.
He said Total was still in negotiations with Qatargas for five million tonnes of LNG a year to supply Europe and the U.S., but declined to comment further on the deal that was expected to be concluded earlier this year.
Total, which already has interests in LNG production in Oman, Nigeria, Qatar and the Barents Sea, is in negotiations for an Angolan plant and is involved in the Fos II French terminal due to start operating in 2007.
It has taken a 25 percent stake in Shell's (RD.AS: Quote, Profile, Research) (SHEL.L: Quote, Profile, Research) Altamira LNG import terminal project on the east coast of Mexico, expected to start operating in the second half of 2006.
"Both projects will serve different segments of the North American market," said the Total spokesman.
Total has until Nov.15 to take up the option with Cheniere's wholly owned limited partnership, Sabine Pass LNG, for the rights to the capacity that will begin no later than April 2009. Construction of the terminal will begin early next year.
The terminal will be accessible to large tankers and will feed existing pipelines in Louisiana and Texas, said the spokesman.
"It will provide flexible access to a very deep market where Total is already active," said the spokesman.
Cheniere's project is the second LNG terminal being built on the Sabine Pass, which forms the border between southeast Texas and southwest Louisiana along the Gulf Coast.
The other LNG terminal, to be built on the Texas side of the pass, is planned by Exxon Mobil Corp. (XON.N: Quote, Profile, Research) . |
