CPC to buy 5% stake in Qatar liquefied natural gas project

CPC and Ras Laffan Liquefied Natural Gas Co. Ltd. (II) signed a contract yesterday for the Taiwanese refiner to buy a stake in the Qatari company’s No. 5 LNG production line, or train, CPC said on its Web site yesterday.

Taiwan’s only natural gas producer and importer started buying LNG this year from the Qatari company under a 25-year contract. CPC Chairman Wenent Pan said in May 2007 that the company plans to more than double oil and gas reserves in five years to shield the island against the rising cost of imports.

The company has investments in oil and gas fields in Africa, Southeast Asia, the U.S., Australia and Latin America. In the Taiwan Strait, CPC is developing a field that has an estimated 6 billion cubic meters of natural gas, the company said in January 2005. Production is slated to start in 2010.

Ras Laffan Liquefied Natural Gas is a Qatari joint venture with Exxon Mobil Corp., the world’s largest publicly traded oil company.

LNG is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 259 Fahrenheit), for transportation by ship to destinations not connected by pipeline. On arrival, it’s turned back into gas for distribution to power plants, factories and households.

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