Mubasher: State-run Qatar Petroleum merger of liquefied natural gas (LNG) producers Qatargas and RasGas went into effect as of 1 January 2018, said CEO Saad Al Kaabi in a news conference on Wednesday.

The merger will save around QAR 2 billion ($500 million) a year for Qatar Petroleum in operation costs, Al Kaabi added.

Qatargas and RasGas were the world’s largest LNG producers ahead of the consolidation.

The new entity, Qatargas, will manage the company’s LNG production, which is amounted to 77 million tonnes a year, which was sold through a slew of joint venture agreements with Western oil majors such as Exxon Mobil and Royal Dutch Shell.

“This integration is an integral part of Qatar Petroleum’s vision to become one of the best national oil and gas companies in the world, with roots in Qatar and a strong international presence,” Al Kaabi commented.