Page 6 - MEOG Week 13 2021

MEOG COMMENTARY MEOG

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.

QATAR STATE-OWNED Qatar Petroleum (QP) contin- activity is not slowing down, and indeed appears
ues its run of announcements related to its LNG to be gaining momentum as QP advances its
business. On March 20, the company issued an expansion project while also looking for more
WHAT: invitation to tender (ITT) to a “large” group of buyers.
State-owned QP LNG ship owners for the chartering of LNG car-
has made more riers for its future shipping requirements. This Invitation to tender
announcements related was followed by an announcement on March 22 The ITT package issued by QP is aimed at select-
to its LNG business in that the Qatari firm had struck a long-term sup- ing “world-class” ship owners for the long-term
recent days. ply deal with China’s Sinopec. time charter of LNG carriers to satisfy the future
These are the latest developments following a requirements of the company and its subsidiar-
WHY: busy few weeks for QP since it announced a final ies. QP noted that this included the requirements
The company is investment decision (FID) on its North Field related to its North Field expansion projects, as
embarking on a major East (NFE) expansion project. The project is due well as to the Golden Pass LNG export termi-
expansion of its LNG to start up in the fourth quarter of 2025, pro- nal on the US Gulf Coast, which it is develop-
production capacity and ducing 1.4mn barrels of oil equivalent per day ing jointly with ExxonMobil, with a targeted
continuing to seek new (boepd) of gas, condensate, liquefied petroleum start-up date of 2024.
buyers. gas (LPG), ethane, sulphur and helium. In addition, QP said the ITT included options
NFE will underpin the expansion of Qatar’s to replace time charters for a number of Qatar’s
WHAT NEXT: LNG production capacity from 77mn tonnes LNG carriers that will expire in the next few
QP has invited LNG per year currently to 110mn tpy following the years.
ship owners to bid for start-up of four new mega-trains. A further QP will review bidders’ technical and com-
the chartering of LNG expansion phase – North Field South (NFS) – is mercial capabilities with the objective of assign-
carriers for its future subsequently expected to start up in 2027, bring- ing selected ship owners to construction slots
shipping requirements. ing Qatar’s LNG production capacity to 126mn that were previously reserved at a number of
tpy. Chinese and Korean shipyards to build up to
Since the announcement of the FID, QP has 100 new LNG carriers. The company described
awarded certain contracts related to NFE, as well this as the largest LNG shipbuilding programme
as entering into various supply deals and mak- in history when it was unveiled last year, with a
ing other moves in the LNG space. The news price tag of up to QAR70bn ($19bn).
in recent days suggests that this flurry of LNG Now, Qatari Minister of State for Energy

P6 www. NEWSBASE .com Week 13 31•March•2021