Page 4 - GLNG Week 12 2021

GLNG COMMENTARY GLNG

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

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

P4 www. NEWSBASE .com Week 12 26•March•2021