Page 12 - AsianOil Week 13 2021

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QP makes more

LNG moves

Qatar Petroleum continues to make new moves related to its LNG business,
including striking a new long-term supply deal with China’s Sinopec

COMMENTARY STATE-OWNED Qatar Petroleum (QP) contin- Since the announcement of the FID, QP has
ues its run of announcements related to its LNG awarded certain contracts related to NFE, as
business. On March 20, the company issued an well as entering into various supply deals and
WHAT: invitation to tender (ITT) to a “large” group of making other moves in the LNG space. The
State-owned QP LNG ship owners for the chartering of LNG car- news in recent days suggests that this flurry
has made more riers for its future shipping requirements. This of LNG activity is not slowing down, and
announcements related was followed by an announcement on March 22 indeed appears to be gaining momentum as
to its LNG business in that the Qatari firm had struck a long-term sup- QP advances its expansion project while also
recent days. ply deal with China’s Sinopec. looking for more buyers.
These are the latest developments following a
WHY: busy few weeks for QP since it announced a final Invitation to tender
The company is investment decision (FID) on its North Field The ITT package issued by QP is aimed at select-
embarking on a major East (NFE) expansion project. The project is due ing “world-class” ship owners for the long-term
expansion of its LNG to start up in the fourth quarter of 2025, pro- time charter of LNG carriers to satisfy the future
production capacity and ducing 1.4mn barrels of oil equivalent per day requirements of the company and its subsidiar-
continuing to seek new (boepd) of gas, condensate, liquefied petroleum ies. QP noted that this included the requirements
buyers. gas (LPG), ethane, sulphur and helium. related to its North Field expansion projects, as
NFE will underpin the expansion of Qatar’s well as to the Golden Pass LNG export termi-
WHAT NEXT: LNG production capacity from 77mn tonnes nal on the US Gulf Coast, which it is develop-
QP has invited LNG per year currently to 110mn tpy following the ing jointly with ExxonMobil, with a targeted
ship owners to bid for start-up of four new mega-trains. A further start-up date of 2024.
the chartering of LNG expansion phase – North Field South (NFS) In addition, QP said the ITT included
carriers for its future – is subsequently expected to start up in 2027, options to replace time charters for a number
shipping requirements. bringing Qatar’s LNG production capacity to of Qatar’s LNG carriers that will expire in the
126mn tpy. next few years.

P12 www. NEWSBASE .com Week 13 01•April•2021