Page 16 - GLNG Annual Review 2021

GLNG JULY GLNG

More progress for QP

Qatar Petroleum has reported a series of updates in

recent days, including announcing a new supply deal

and raising $12.5bn via a multi-tranche bond offering

PERFORMANCE IT has been another active few days for Qatar cargoes, and North Field East will increase its
Petroleum (QP), which has issued multiple liquefaction capacity from 77mn tonnes per
WHAT: announcements this year relating to its North year currently to 110mn tpy by 2026, with the
QP has struck a new Field expansion project and other initiatives addition of NFS raising capacity to 126mn tpy
supply deal, raised aimed at solidifying the company’s position as a by 2027.
$12.5bn via a bond global LNG leader. $29bn in engineering, procurement and con-
offering and has In recent days, the state-owned company struction (EPC) contracts have been handed
reported high interest in has reported on further progress. In July, QP out for both NFE and NFS since QP announced
participation in its North said it had received offers for double the equity its final investment decision (FID) on NFE in
Field East project. available to potential partners in the bidding February.
process for participation in North Field East Now, the company finds itself in a stronger
WHY: (NFE), the first stage of the expansion. Subse- position to finance the project following the
The company is making quently, the company unveiled a new 10-year bond offering, which was QP’s first public bond
progress on North Field deal with Royal Dutch Shell for the supply of sale and also the largest issuance by emerging
East, which is the largest LNG to China from January 2022. And on July markets this year. Combined orders topped
single LNG project in the 1, QP followed this with the news that it had $41bn, according to a document from one of
world. raised $12.5bn in a multi-tranche bond offering, the banks involved in the deal.
exceeding expectations that the corporate bond “This is the largest US dollar fixed rate oil and
WHAT NEXT: offering could raise up to $10bn. gas offering, the largest corporate issuance in the
Proceeds from the bond The proceeds from the bond offering will be MENA [Middle East and North Africa] region,
offering will be used used in particular to support the North Field and the largest corporate Formosa tranche
to support the LNG expansion projects – with North Field South raised globally,” QP stated.
expansion, among other (NFS) due to follow NFE – over the coming few The company sold $1.5bn in a five-year por-
projects. years. tion at 50 basis points (bps) over US Treasuries
(UST), $3.5bn in 10-year paper at 90 bps over
Strength to strength UST, $3.5bn in 20-year notes at 3.15% and $4bn
The various pieces of news illustrate Qatar’s in 30-year Formosa bonds at 3.3%.
growing dominance in the global LNG indus- The bonds landed roughly 10-15 bps
try. QP already supplies one in five LNG wider than the sovereign’s curve, which is

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