Report: Qatar’s US$10bn gas project delayed again

RasGas

supplied

RasGas

The launch of Qatar’s Barzan Gas project is expected to be delayed until at least next year due to a pipeline leak, Reuters reports.

Citing anonymous industry sources, the news agency said that the impact of the leak, discovered in recent weeks, was “still being assessed.” It added that “a start-up this year is unlikely.”

The project had been expected to come online next month.

Barzan Gas Project

RasGas

Barzan Gas Project

This is just the latest setback for the US$10 billion gas production facility, which had originally eyed a 2014 launch.

Domestic demand

When it does begin operations, Barzan will significantly increase Qatar’s gas production. This will provide a much-needed boost to the country’s economy, which has been hit by low oil prices.

Last year, the Ministry of Development Planning and Statistics said that it expected the Barzan project to help lift the country’s GDP growth.

It is being operated by RasGas and is located 80km north-east of Ras Laffan Industrial City.

The company has previously said that the fuel produced would be used to meet Qatar’s “rising domestic gas demand” as the country rapidly expands its infrastructure ahead of the 2022 World Cup.

Much of the gas produced will be used to power the country’s energy and water sectors, RasGas added on its website.

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