Qatar Petroleum to merge Qatargas, RasGas

State-owned Qatar Petroleum plans to merge liquefied natural gas (LNG) producers Qatargas and RasGas, the country’s official news agency QNA reported on Sunday.

The two companies will be integrated into a single entity named Qatargas, which will take on all the operations of both producers.

The merger process is planned to start immediately, with completion expected within the next 12 months, said Qatar Petroleum CEO Saad Sherida Al-Kaabi.

The existing operations groups in Qatargas and RasGas will not be affected by the merger, he added, noting that all Qatari nationals in both companies will be integrated into the new organization. 

The hydrocarbon industry in the GCC has been seeing an increasing level of downsizing and consolidation, following the tumble in crude prices.

The UAE’s Abu Dhabi National Oil Company (Adnoc) announced plans in October this year to merge its two offshore firms, Abu Dhabi Marine Operating Company (ADMA-OPCO) and Zakum Development Company (ZADCO), into a single entity.

Last month, SABIC chief executive Yousef Al-Benyan said the GCC petrochemical sector could use more merger and acquisition (M&A) activity, as well as consolidation measures in order to cut costs and improve efficiency.