Page 5 - MEOG Week 24 2022

MEOG COMMENTARY MEOG

The fanfare with which the latest deal was Broader preparations
announced is unsurprising given the project’s While Asian consumers have been signing long-
importance to Qatar, while it is also the first new term deals with Qatar – 16mn tpy of deals lasting
phase to be announced since the country ended up to 20 years were signed in 2021 alone – Al
a self-imposed, 12-year moratorium on drilling Kaabi said that Qatari LNG has become an even
in 2017. The ban had been implemented amid hotter commodity.
concerns about the depletion of pressure in the “The tightness in the LNG market is now […]
North Field, Doha’s most important strategic But with NFE and NFS, we should have a lot of
asset. extra volumes. A lot of buyers are talking to us,
whether it is in Europe or Asia,” he said.
Progress As supply/demand dynamics and political
Drilling work for NFE began in April 2020 and concerns elsewhere increase its popularity, and
a series of major deals have been awarded since. QatarEnergy builds out its production capacity,
Over the past 12 months, more than $20bn of it has continued its push to develop the mid-
contracts have been handed out, the largest stream capabilities required to cater to the mar-
of which was the $13bn EPC deal with a JV ket. Last week, the company signed a $852mn
between Chiyoda and Technip Energies cover- deal with South Korea’s Daewoo Shipbuilding
ing the construction of four LNG mega-trains & Marine Engineering (DSME) for four LNG
and associated facilities. carriers under a $19bn fleet expansion project
A major breakthrough came in January when agreed that will see the NOC acquire up to 100
US-based McDermott won an engineering, pro- new vessels.
curement, construction and installation (EPCI), The ships, which are due to be delivered in
valued at around $3-4bn, for the offshore scope 2025, will be dedicated to exporting LNG car-
of NFE. goes from NFE. This follows the long-term char-
The deal covered 13 wellhead platform top- tering of four tankers in April and the placement
sides, eight of which are for NFE and five for of a $770mn order with China’s Hudong-Zhong-
NFS, as well as connecting pipelines and the hua shipyard for four carriers in October.
shore approaches for the NFE pipelines, beach While Qatar has been merely a bystander to
valve stations and buildings. Jackets and pipe- the geopolitical and economic factors that have
lines for the NFS project will be subject to a sep- brought about the current clamour for new
arate tender that is expected to be awarded later sources of supplies, it could hardly have timed
this year. its expansion better.™

Week 24 15•June•2022 www. NEWSBASE .com P5