Page 7 - GLNG Annual Review 2021
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previous year, only one FID was taken on new be 86%, or 76mn tpy, according to Rystad.
liquefaction capacity in 2020, at Sempra Energy’s Expectations are that the market will tighten
Costa Azul export project in Mexico. by the time NFE is up and running, and QP has
Qatar has nevertheless pushed ahead with already booked some of its planned capacity
NFE, emboldened by its low costs of production. specifically for buyers in Europe. “I’m not wor-
“At a long-term breakeven price of just over $4 ried about the marketing side of it,” al-Kaabi
per mmBtu, it’s right at the bottom of the global said.
LNG cost curve, alongside Arctic Russian pro- Qatar also wants to build carbon, capture and
jects,” Wood Mackenzie research director Giles storage (CCS) capacity to store NFE’s emissions,
Farrer commented. “Qatar is pursuing market in order to assuage increasingly climate-con-
share. This FID is likely to put pressure on other scious LNG buyers, particularly in Europe.
pre-FID LNG suppliers, who may find Qatar has Renewable energy will also play a major role in Qatar also wants
secured a foothold in new markets.” powering its facilities.
QP is also working on a second expansion QP still wants to bring on board partners to build carbon,
phase known as North Field South (NFS), at NFE, even though it has said it is willing to capture and
which would take its capacity to 126mn tpy. It go ahead with the project alone if necessary. A
hired McDermott for front-end engineering decision on partnerships will be made by the storage (CCS)
and design (FEED) work on the project last end of this year, al-Kaabi said. ExxonMobil,
month. And according to al-Kaabi, the exporter Royal Dutch Shell, Total and ConocoPhillips capacity to store
is currently evaluating a further increase beyond are long-serving partners at existing Qatari
126mn tpy. LNG plants. NFE’s emissions.
Wood Mackenzie estimates that QP will have QP began shortlisting partners for NFE in
more than 75mn tpy of uncontracted LNG vol- 2019, and had intended to make its choices last
umes to sell by 2027, representing 70% of its year, but the coronavirus pandemic disrupted
supply portfolio. With 110mn tpy of total pro- the process. The FID demonstrates QP’s confi-
duction capacity by 2030, Qatar will account for dence in the project, although the exporter will
nearly a fifth of the global total. still want partners to share costs and risks and
However, Norwegian consultancy Rystad assist with offtake.
Energy estimates that its actual production is According to al-Kaabi, QP is in talks with Exx-
likely to reach 107mn tpy by the end of the onMobil, Chevron, ConocoPhillips and others
decade. The US will likely be producing at a to take a 30% stake in the expansion. Several
rate of 98mn tpy by that stage, or 91% of its Asian LNG buyers are also interested in partici-
capacity, while Australia’s utilisation will only pating and QP is assessing their offers, he said.
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