QPI plans to extend Centrica deal in N. America
, May 14, 2013
Qatar Petroleum International (QPI) hopes to extend its new deal with Britain's Centrica by acquiring more gas or tight oil resources across North America, the chief executive said.
Centrica and QPI said in April they would buy Suncor Energy's gas business in Canada for C$1 billion ($986.73 million) in their first acquisition since agreeing in 2011 to hunt for assets around the world together.
"We are looking at upstream business in the US both in oil and gas but particularly in gas. With everything happening in the United States today we are trying to register a position," Nasser al-Jaidah said in an interview on Tuesday.
"We are hoping to extend the Centrica deal in North America, through acquisitions and other means. Not the oil sands, but gas or oil or tight oil."
The Canadian assets that Centrica and QPI, the international arm of the world's largest LNG exporter, bought do not produce enough gas to merit building an LNG export terminal.
But ramping up production from those fields and buying more producing assets could potentially see QPI start LNG exports from Canada, he said.
"What we are trying to do now is extensive co-operation with international energy companies. This is the vehicle we are choosing, for the moment," Jaidah said.
A shale gas boom in North America over the last decade has forced Qatar Petroleum (QP) to find new buyers for billions of dollars worth of LNG that it had planned to sell to the United States.
The import terminals built to receive LNG may start exporting US gas to global markets in a few years, increasing competition for sales that Qatari LNG exporters can hedge against by expanding their production in North America.
Last week, Exxon Mobil and QP said they planned to ship LNG to Britain if a plan to turn the Golden Pass Qatari LNG import terminal in Texas into an export plant is approved by US authorities.
Jaidah said LNG from Golden Pass on the US Gulf coast could be sold around the Atlantic basin, which includes western Europe and the booming LNG consuming markets of Latin America.
Qatar has imposed a moratorium on further gas export projects from its North Field in the Middle East, prompting QPI to look abroad for further growth, using some of the proceeds from its multi-billion dollar LNG exports.
QPI is considering investments in upstream projects in North Africa and in European utilities, he said, with no set limit on investments for expansion around the world.
"There is no ceiling, but it is significant. In the billions; 2013 will be a significant year for us," he said.-Reuters
More Energy, Oil & Gas Stories
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd
- Korean refiners eye more Iraq crude
- Dana starts Egypt gas plant upgrade
- Opec oil production hits new high in Feb
- Taqa-led group to buy Indian hydropower plants
- Schneider gets energy management certification
- Morocco moves ahead with $1.7bn wind farms
- Iraq approves power plant investments
- 670,000 oil & gas wells ‘need to be drilled’
- Qatar bourse celebrates Mesaieed listing