Page 4 - GLNG Week 18 2022

GLNG COMMENTARY GLNG

QatarEnergy awards final NFE EPC

contract

The final EPC package has been awarded by QatarEnergy
under its world-scale North Field East (NFE) expansion

MIDDLE EAST STATE-OWNED QatarEnergy last week the further expansion of storage and loading
awarded the third and final engineering, pro- facilities for propane and butane, light naphtha
WHAT: curement and construction (EPC) contract and condensate production from the “two future
A consortium was under a major project that will see the country additional LNG trains that are planned for the
awarded a deal extended reclaim top spot in global LNG capacity. North Field South project”.
an agreement signed last State-owned QatarEnergy last week awarded
year which will expand the third and final engineering, procurement String of awards
storage and loading and construction (EPC) contract under a major In January, QatarEnergy awarded an engi-
facilities. project that will see the country reclaim top spot neering, procurement, construction and instal-
in global LNG capacity. lation (EPCI) deal to US-based contractor
WHY: The award is the latest in a string of contracts McDermott International for the offshore scope
Qatar has awarded as part of the $28.75bn North Field East (NFE) of NFE, thought to be valued at $3-4bn.
billions of dollars of expansion project as Doha presses forward on The covered 13 wellhead platform topsides,
contracts related to the the development that aims to expand the coun- eight of which are for NFE and five for NFS,
gas expansion project. try’s liquefaction capacity from 79mn tonnes per as well as connecting pipelines and the shore
year currently to 110mn tpy by 2025 or 2026. approaches for the NFE pipelines, beach valve
WHAT NEXT: Meanwhile, a final investment decision (FID) stations and buildings. Jackets and pipelines for
Further awards should is expected within months on the North Field the NFS project will be subject to a separate ten-
be anticipated as South (NFS) project which would raise capacity der that is expected to be awarded by mid-2022.
QatarEnergy nears a to 126mn tpy by 2027. Last year’s NFE awards also included a $1.7bn
financial decision on the EPCI contract with Italy’s Saipem covering var-
North Field South project, EPC work ious offshore facilities, a $2bn lump-sum EPC
expanding LNG capacity QatarEnergy announced that it had issued a contract with Samsung C&T for the expansion
further. lump-sum contract to a consortium of Spain’s of LNG storage and loading facilities at Ras Laf-
Tecnicas Reunidas (TR) and China’s Wison fan and a $13bn EPC deal with a JV between
Engineering covering the expansion of sul- Chiyoda and Technip Energies covering the
phur-handling, storage, and loading facilities at construction of four LNG mega-trains and asso-
Ras Laffan Industrial City. ciated facilities.
A statement said: “These facilities will sup- As work speeds up to increase LNG capacity,
port the NFE’s four new LNG trains, which Doha has been undertaking a $19bn fleet expan-
are scheduled to start by year-end 2025. The sion project to transport its production to global
contract will also include an option for further markets.
expansion to support sulphur production for Last month, QatarEnergy signed time-char-
the two additional LNG trains of the North Field ter parties (TCP’s) with a subsidiary of Mitsui
South (NFS) project, and infrastructure to sup- O.S.K Lines (MOL) for “the long-term char-
port future additional LNG trains.” ter and operation of four LNG ships”, the first
Meanwhile, TR noted that the award was the batch of TCPs awarded under its programme to
result of the Qatari firm exercising its contract acquire up to 100 new carriers in the largest fleet
options for the so-called EPC-3 under a deal expansion in the history of the LNG sector.
awarded in August 2021. It said that the exten- Back-to-back LNG carrier shipbuilding
sion takes the 2021 deal from 41 months to 47 contracts were then signed between MOL
and increases its value beyond $800mn. and Hudong-Zhonghua Shipbuilding Group
Providing more detail on the deal, it said that (Hudong), a subsidiary of the state-owned China
the consortium would work to expand “existing State Shipbuilding Corp. (CSSC), for the con-
liquid products storage and loading facilities for struction of four new LNG carriers.
light naphtha and propane and the expansion This followed a direct order with
of import facilities for mono-ethylene glycol Hudong-Zhonghua in October worth more than
(MEG)”. $770mn for the first four LNG carriers under
TR added that the development would enable the programme and the Qatari firm’s first order

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