Page 12 - MEOG Week 34 2021
P. 12
MEOG TENDERS MEOG
QP awards NFE EPC contract
to Tecnicas Reunidas
QATAR SPAIN’S Tecnicas Reunidas announced this tpy by 2027. It is the world’s single largest LNG
week that it had been awarded an engineering, project.
procurement and construction (EPC) contract QP took a final investment decision (FID) on
by Qatar Petroleum (QP) under the state firm’s NFE alone earlier this year. The company had
$28.75bn North Field Expansion (NFE) project. previously relied on IOCs’ expertise – as well
Under the 41-month contract awarded by as their investments – to develop its initial liq-
QP’s Qatargas subsidiary, Tecnicas Reunidas will uefaction capacity but now has the expertise to
carry out work to expand liquid products storage go it alone. However, having partners to market
and loading at Ras Laffan Terminal. the LNG volumes produced is thought to be the
In a statement, the Spanish firm said that main driver behind Doha’s attempt to bring in
the initial scope of the onshore EPC-3 package other participants now.
includes the construction of liquid products Reports emerged around a month ago that
rundown lines, lean gas pipeline for gas deliv- QP was also in talks with state-owned Chinese
ery into QP’s domestic gas grid, the expansion companies including PetroChina and Sinopec
of the Ras Laffan Terminal Operations (RLTO) over equity stakes in the NFE project as China
product storage and loading facilities, monoeth- remains on course to become the world’s largest
ylene glycol (MEG) storage and transfer facilities LNG importer.
expansion, and CO2 sequestration pipeline and It has seen trade relations worsen with Aus-
associated facilities at CO2 injection wellheads. tralia – a major supplier of the super-chilled fuel
Tecnicas Reunidas said that the initial value – and Sinopec struck a 10-year supply deal with
of the contract is in excess of $500mn but added QP in March, and reports of the talks signal a
that “the award also foresees several additional growing co-operation between China and Qatar
options that Qatar Petroleum may execute on LNG.
within a 3-month validity period after the con- However, with the IOCs also now bidding
tract is signed”. to participate in NFE, it seems that Qatar has
These would see the company expand liquid not fully turned away from Western majors yet
products storage and loading “to handle future either, despite saying recently that it would not
expansion of two additional LNG trains” and renew contracts with its current partners in the
would “substantially increase the total amount” Qatargas 1 LNG plant.
of work apportioned to Tecnicas Reunidas. The current 25-year JV arrangement with
Qatargas will oversee and implement the pro- super-majors TotalEnergies (10%) and Exxon-
ject on behalf of QP. Mobil (10%) as well as Marubeni (7.5%) and
The NFE project is set to raise Qatar’s lique- Mitsui (7.5%), expires on December 31, and QP
faction capacity from 79mn tonnes per year cur- will assume full ownership on January 1, 2022,
rently to 110mn tpy by 2025 or 2026 and 126mn up from its current 65% holding.
P12 www. NEWSBASE .com Week 34 25•August•2021
