Apr. 22. 2013
Marubeni Corporation (President: Fumiya Kokubu, Head Office: Chiyoda-ku, Tokyo, Japan, “Marubeni”) has reached an agreement with other parties to participate in Laffan Refinery Company Limited 2 (“LR2”), which will be incorporated in the near future by the purchase of 1% of its shares, and signed a Joint Venture Agreement on April 21, 2013.
The other participating parties are Qatar Petroleum (President: HE Dr. Mohammed Bin Saleh Al-Sada, Head Office: Doha, Qatar, “QP”), Total S.A. (President: Christophe de Margerie, Head Office: Paris, France), Idemitsu Kosan Co., Ltd. (President: Kazuhisa Nakano, Head Office: Chiyoda-ku, Tokyo, Japan), Cosmo Oil Co., Ltd. (President: Keizo Morikawa, Head Office: Minato-ku, Tokyo, Japan), and Mitsui & Co., Ltd (President: Masami Iijima, Head Office: Chiyoda-ku, Tokyo, Japan).
Marubeni has a 4.5% stake in Laffan Refinery Company Limited (“LR1”), which owns a condensate refinery in Ras Laffan Industrial City with a refining capacity of 146,000 barrels per day that has been in operation since 2009. The LR2 condensate refinery is the same size as LR1, and the commencement of commercial operations is expected in the second half of 2016. The total project cost is estimated to be approximately US$1.5 billion.
As with LR1, LR2 will produce naphtha, kerojet fuel, gasoil and LPG by refining the condensate produced from Qatar North Field, which is the largest single natural gas field in the world. The gasoil from the refinery will be treated by a diesel hydro treater to produce more eco-friendly and value-added products. It is expected that there will be synergy between LR1 and LR2 as both projects will share certain facilities with each other.
In addition to LR1 and LR2, Marubeni has been doing a lot of business in the State of Qatar, including LNG projects. Through this new project, we intend to expand our natural resource business and also would like to reinforce the strong longstanding relationship with QP and the State of Qatar.
Outline of Laffan Refinery Company Limited 2
Incorporation: April 2013 (schedule)
Location: Doha, the State of Qatar
Shareholders (percentage of shares):
Qatar Petroleum (84%), Total S.A. (10%), Idemitsu Kosan Co.,Ltd. (2%), Cosmo Oil Co. Ltd. (2%),
Marubeni Corporation (1%), Mitsui & Co., Ltd. (1%)