Page 5 - MEOG Week 01 2021

MEOG COMMENTARY MEOG

s
t
a
(

r
y
r
e
t
n
n

t
a
D
n
a
n
i
t
s
e
i
t
t
a
o
i
n
o
r
u
V

l
o
t
o
l
a
m
(
t
m
m
u

e
a
o
V
u
l
a
u

l
m
m
p
t
e
m
(

u
o
s
h
t
n
m
M Month C Customer r D Destination D Duration (yrs) ) S Start Date A Annual Volume (mmtpa) ) T Total Volume (mmt) )
e
o
t
Feb-21 Vitol Bangladesh Not disclosed Late-21 1.25 N/A
Feb-21 PSO Pakistan 10 Jan-22 3 30
Mar-21 Sinopec China 10 Jan-22 2 20
Jun-21 Shell China 10 Jan-22 1 10
Jul-21 CPC Taiwan 15 Jan-22 1.25 18.75
Jul-21 KOGAS South Korea 20 Jan-22 2 40
Sep-21 CNOOC China 15 Jan-22 3.5 52.5
Dec-21 Guangdong Energy China 10 2024 1 10
Dec-21 S&T International China 15 Late-24 1 15
t
a
o
T Total l 1 16 1 196.25
.
2
5
9
6
6
(RLTO) product storage and loading facilities, Petroleum’s massive LNG shipbuilding pro-
monoethylene glycol (MEG) storage and trans- gramme, which will cater for future LNG fleet
fer facilities expansion, and CO2 sequestration requirements for the North Field expansion
pipeline and associated facilities at CO2 injec- projects as well as for existing vessel replacement
tion wellheads. requirements.”
Last year’s NFE awards also included a $1.7bn With the 2020 deal covering “a significant
EPCI contract with Italy’s Saipem covering var- portion” of Hudong’s LNG ship construction
ious offshore facilities, a $2bn lump-sum EPC capacity up until 2027, the Qatari firm has previ-
contract with Samsung C&T for the expansion ously said that it could spend up to $3.02bn with
of LNG storage and loading facilities at Ras Laf- the shipyard.
fan and a $13bn EPC deal with a JV between As NOCs elsewhere in the Gulf move to exert
Chiyoda and Technip Energies covering the further control over the supply chain through
construction of four LNG mega-trains and asso- which their production is sold, Qatar’s ‘nation-
ciated facilities. alisation’ of Qatargas 1 illustrates both its confi-
dence and intention to protect its interests.
New era As noted by Al-Kaabi at the time of the Qatar-
Despite its diversification efforts, the nation’s gas 1 decision in April 2021, the move concludes
wealth is highly dependent on the success of this “more than 25 years of successful operations of
strategy and Doha has also sought to embrace QG1, from which the first ever Qatari LNG cargo
the energy transition as it aims to become a was exported”. During this period, the company
global “energy transition partner”; the new has acquired expertise from its JV partners Total,
corporate tagline of Qatar Petroleum, which ExxonMobil, Marubeni and Mitsui, and will
rebranded as QatarEnergy in October. now proceed alone.
At that point, Al-Kaabi said: “We are making
sure that we protect our environment by keeping Export agreements
our carbon footprint at a minimum. This is why As Qatar embarks on a new ambitious era of
we are utilising sophisticated carbon seques- LNG, Qatargas 1 and 2 are set to commence
tration methods to capture and sequester 9mn new shipments this month that will amount to
tonnes of carbon dioxide [CO2] a year by the end 12.75mn tpy of contracted volumes. In 2021,
of the decade.” QatarEnergy signed nine LNG sale and purchase
These contracts are part of a broader doubling agreements (SPAs) with Asian customers cover-
down by Doha on efforts to regain its title as the ing a total volume of 197.5mn tonnes of LNG.
world’s largest LNG exporter. To cater to growing Of these, six are long-term contracts that
liquefaction capacity, Qatar is also undertaking commence this month, providing between 1mn
a $19bn-plus programme to acquire up to 100 tpy and 3.5mn tpy to clients in China, Pakistan,
new carriers in the largest fleet expansion in the South Korea and Taiwan over periods of 10, 15
history of the LNG sector. and 20 years.
QatarEnergy placed an order in October Meanwhile, Qatar is also increasing its role in
for the first four LNG carriers under this pro- its own regional market with a 15-year, 3mn tpy
gramme with Hudong-Zhonghua Shipbuilding supply deal with Kuwait Petroleum Corp. (KPC)
Group Co., a subsidiary of the China State Ship- also beginning this month, the first long-term
building Corp. (CSSC). agreement signed for Kuwait’s new LNG Import
The deal is the first with a Chinese ship- terminal (LNGI), which is expected to achieve
yard and follows an April 2020 agreement with commercial launch in March.
Hudong to reserve ship construction capacity. 2022 is set to be a year of major growth for the
The contract is valued in excess of $770mn. Qatari LNG industry, and with so many projects
In an official statement, then-QP said: “These still to kick off, this will set the tone for much of
four carriers are the first batch of orders in Qatar the next decade.™
Week 01 05•January•2022 www. NEWSBASE .com P5