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Satyendra Pathak
Doha
Qatar Petroleum (QP) on Monday signed onshore engineering, procurement and construction (EPC) contract with a joint venture between Chiyoda and Technip to develop North Field East Project (NFE), the world’s largest LNG project.
The contract was signed by Minister of State for Energy Affairs and Qatar Petroleum President and CEO HE Saad Sherida Al Kaabi, Chiyoda Corporation Chairman and CEO Kazushi Okawa and Technip Energies President Arnaud Pieton.
“The total cost of the project will be $28.7 billion, making it one of the industry’s largest investments in the past few years and largest LNG capacity ever built,” Kaabi said while addressing a virtual press conference on the occasion.
Production from NFE project, which will raise Qatar’s LNG production capacity from the current 77 million tonnes per annum (mtpa) to 110 mtpa by 2026, will start by the fourth quarter of 2025 and reach full capacity by late 2026 or early 2027, Kaabi said. In addition to LNG, the project will produce condensate, LPG, ethane, sulfur and helium. Its total production will reach about 1.4 million barrels of oil equivalent per day.
The main scope of the EPC contract is the construction of 4 mega LNG trains with a capacity of 8 mtpa each, with associated facilities for gas treatment, natural gas liquids recovery, as well as helium extraction and refining within Ras Laffan Industrial City.
Kaabi said, “The execution of this EPC contract marks the commencement of the construction of the North Field East LNG Project, and is a significant landmark in Qatar Petroleum’s strategic growth journey in a sustainable manner. It will be the largest LNG capacity addition ever and the most competitive LNG project in the world. This project will generate substantial revenues for Qatar and will have significant benefits to all sectors of the Qatari economy during the construction phase and beyond.”
He said, “Signing of this contract holds special significance as it comes at a critical time when the world is still reeling from the effects of a global pandemic and related depressed economies. This investment decision is a clear demonstration of the steadfast commitment by Qatar to supply the world with the clean energy it needs.”
The NFE project represents the first phase of LNG expansion in Qatar, while the second phase, referred to as the North Field South Project (NFS), will further increase Qatar’s LNG production capacity from 110 mtpa to 126 mtpa. With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains with a capacity of 8 mtpa each and associated offshore and onshore facilities.
Kaabi said that while QP is ready to develop the North Field alone, the bidding process for international oil firms (IOCs) to take up to a 30 percent stake in the project’s first phase will start next week.
He said he expects a decision to finalise partnerships with the IOCs for the field’s expansion by the end of this year.
Kaabi said, “QP is currently evaluating the further increase in LNG capacity beyond the 126 mtpa as we want to monetise our natural resources at a faster pace.”
Doha
Qatar Petroleum (QP) on Monday signed onshore engineering, procurement and construction (EPC) contract with a joint venture between Chiyoda and Technip to develop North Field East Project (NFE), the world’s largest LNG project.
The contract was signed by Minister of State for Energy Affairs and Qatar Petroleum President and CEO HE Saad Sherida Al Kaabi, Chiyoda Corporation Chairman and CEO Kazushi Okawa and Technip Energies President Arnaud Pieton.
“The total cost of the project will be $28.7 billion, making it one of the industry’s largest investments in the past few years and largest LNG capacity ever built,” Kaabi said while addressing a virtual press conference on the occasion.
Production from NFE project, which will raise Qatar’s LNG production capacity from the current 77 million tonnes per annum (mtpa) to 110 mtpa by 2026, will start by the fourth quarter of 2025 and reach full capacity by late 2026 or early 2027, Kaabi said. In addition to LNG, the project will produce condensate, LPG, ethane, sulfur and helium. Its total production will reach about 1.4 million barrels of oil equivalent per day.
The main scope of the EPC contract is the construction of 4 mega LNG trains with a capacity of 8 mtpa each, with associated facilities for gas treatment, natural gas liquids recovery, as well as helium extraction and refining within Ras Laffan Industrial City.
Kaabi said, “The execution of this EPC contract marks the commencement of the construction of the North Field East LNG Project, and is a significant landmark in Qatar Petroleum’s strategic growth journey in a sustainable manner. It will be the largest LNG capacity addition ever and the most competitive LNG project in the world. This project will generate substantial revenues for Qatar and will have significant benefits to all sectors of the Qatari economy during the construction phase and beyond.”
He said, “Signing of this contract holds special significance as it comes at a critical time when the world is still reeling from the effects of a global pandemic and related depressed economies. This investment decision is a clear demonstration of the steadfast commitment by Qatar to supply the world with the clean energy it needs.”
The NFE project represents the first phase of LNG expansion in Qatar, while the second phase, referred to as the North Field South Project (NFS), will further increase Qatar’s LNG production capacity from 110 mtpa to 126 mtpa. With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains with a capacity of 8 mtpa each and associated offshore and onshore facilities.
Kaabi said that while QP is ready to develop the North Field alone, the bidding process for international oil firms (IOCs) to take up to a 30 percent stake in the project’s first phase will start next week.
He said he expects a decision to finalise partnerships with the IOCs for the field’s expansion by the end of this year.
Kaabi said, “QP is currently evaluating the further increase in LNG capacity beyond the 126 mtpa as we want to monetise our natural resources at a faster pace.”
