Currently, Qatar has two liquefied natural gas (LNG) exporters: Qatar LNG Company (Qatargas); and Ras Laffan LNG Company (Rasgas). The Qatargas downstream consortium comprises Qatar Petroleum (65 percent), Total (10 percent), ExxonMobil (10 percent), Mitsui (7.5 percent), and Marubeni (7.5 percent). In December 1996, the Qatargas venture delivered its first shipment of LNG to Japan. The Qatargas LNG plant consists of three trains, with a total capacity of 9.2 Mmt/y (446 Bcf).  Qatargas signed an agreement in July 2004 with Gas Natural of Spain for the sale of the incremental volume over a period of 20 years, to commence when the capacity expansion is completed. Rasgas is Qatars second LNG project. The two major shareholders in the project are Qatar Petroleum and ExxonMobil. Rasgas consists of four 3.3-Mmt/y (163 Bcf) trains. The first train was completed in early 1999, and loaded its first cargo in August 1999 for South Koreas Kogas, which has a long-term supply contract. The second train came onstream in April 2000. Rasgas contracted with Chiyoda, Mitsui, and Snamprogetti in April 2001 for the construction of the third 4.7-Mmt/y (228-Bcf) train, which was completed in 2004. A fourth train was completed in late 2005, and the fifth scheduled for 2007. Qatargas II reached financial close in December 2004. The project, which also is a joint venture between ExxonMobil and Qatar Petroleum, will involve two 7.8-Mmt/y (378-Bcf) liquefaction trains, with the first completed in 2007 and the second in 2008. The project will supply an import terminal to be built in the United Kingdom. A preliminary agreement also has been signed with ConocoPhillips for Qatargas III, which would involve 7.5 Mmt/y of liquefaction capacity, aimed at the U.S. market, to begin operation in 2009. Shell concluded a preliminary agreement with Qatar Petroleum for the Qatargas IV project in February 2005, which is to start production in 2009 or 2010, and will likely export mainly to the North American market through El Paso Energys terminal at Elba Island.

Qatars original markets for its LNG exports were Japan and South Korea, the worlds two largest LNG importers. India has joined them as a significant market for Qatari LNG.  RasGas signed an agreement in July 1999 to supply 7.5 Mmt/y (365 Bcf/y) of LNG to Petronet, an Indian LNG import and gas distribution project. Deliveries under the Petronet contract began in January 2004.  Spains Enagas also has signed a purchase agreement with Italys Edison, its first term-contract customer in Europe.  Deliveries of 3.5 Mmt/y (170 Bcf) began in 2005. Another significant proposed project will tie Qatar into the United Arab Emirates (UAE) Dolphin Project, an integrated natural gas pipeline grid for Qatar, UAE, and Oman, with a possible subsea connection linking Oman to Pakistan. The United Offsets Group (UOG), a UAE state-owned corporation backing the project, signed preliminary memorandums of understanding with Qatar, Oman, and Pakistan in June 1999. ExxonMobil also signed a preliminary agreement in June 1999 for the natural gas supply from ExxonMobils production capacity in the North Field. The total project is expected to cost around $10 billion, including costs associated with the development of more extensive gas distribution networks in the UAE and Oman. Qatar initially will sell around 730 Bcf per year of North Field natural gas, starting in 2006, transported through a subsea pipeline linking the North Field to Abu Dhabi in the UAE.  Links between Abu Dhabi, Dubai, and Oman will be added afterwards. UOG announced in March 2000 that TotalFinaElf and Enron had been selected to implement the project, and each would have an equity stake of 24.5%. Enron, however, announced in May 2001 that it was pulling out of the project, and UOG acquired Enrons equity stake, which was resold to Occidental Petroleum in May 2002.  The Dolphin Project has been driven in part by the desire of UAE and Oman to use more natural gas for power generation and industrial uses, and the decline in their own production of associated natural gas. Pakistans participation is highly doubtful, due to its financial condition and the possibility of imports from Iran.

Qatar announced a preliminary agreement with Bahrain to supply it with natural gas from the North Field, beginning in 2008. Negotiations on pricing and volumes continue, and no binding contract has yet been concluded. Kuwait also has held discussions with Qatar about the purchase of Qatari gas. A preliminary agreement was signed for gas sales in July 2000, which would source the gas from ExxonMobils North Field holdings. Details of the project and volumes are still being discussed, and a final agreement has not been reached. Qatar also has held discussions with Bahrain on the possible supply of North Field natural gas, which could be accomplished with a spur from the proposed North Field-Kuwait pipeline. The pipeline would have to be built through Saudi Arabias territorial waters, and political tension between the Saudi and Qatari governments reportedly have inhibited progress on the project. As an alternative, Kuwait may consider importing LNG sourced from Qatar . With such vast reserves of natural gas, Qatar has also been interested in potential development of Gas-to-Liquids (GTL) projects. Shell signed an agreement with Qatar Petroleum in October 2003 for a 140,000-bbl/d GTL facility, the Pearl project, to be built at Ras Laffan. It now appears, though, that the project will likely be delayed by as much as three years. Qatari officials have been sounding a note of caution about further development of the North Field in the near-term, to ensure that reserves are sufficient to last 100 years, and due to shortages of skilled labor and port facilities brought about by the several massive energy development projects already underway.