Page 6 - GLNG Week 01 2021

GLNG COMMENTARY GLNG

QatarEnergy takes over at

Qatargas, hands out EPCI work

The company has awarded work worth billions of dollars that will enable significant

expansion of gas production as it seeks to reclaim the top spot in LNG exports

PROJECTS & QATARENERGY this week awarded an engi- first half of the year. The total value of the work
COMPANIES neering, procurement, construction and instal- awarded to McDermott is thought to be valued
lation (EPCI) contract to US-based contractor at $3-4bn.
WHAT: McDermott International for the offshore scope Minister of State for Energy Affairs and
McDermott won EPCI of its North Field Expansion project. QatarEnergy President and CEO HE Saad
work covering the The nearly $30bn project will expand Qatar’s Sherida Al-Kaabi said: “The award of this major
offshore scope of the liquefaction capacity from 79mn tonnes per EPCI contract is a momentous milestone that
North Field Expansion year currently to 110mn tpy by 2025 or 2026 demonstrates QatarEnergy’s commitment to
project. under North Field East (NFE), with the addition delivering our LNG expansion projects on time
of North Field South (NFS) raising capacity to and to ensuring the significant additional global
WHY: 126mn tpy by 2027. It is the world’s single largest LNG demand is catered for in a timely manner.”
The deal follows billions LNG project. Qatargas continues to oversee and implement
of dollars’ worth of The award follows billions of dollars of con- the project on behalf of QatarEnergy.
contract awards for work tract awards in 2021 and comes just two days The award follows that of a 41-month onshore
across the LNG value after the Qatari firm assumed full control over package to Spain’s Tecnicas Reunidas in August
chain in 2021. the Qatargas Liquefied Natural Gas Company for work to expand liquid products storage and
Ltd (Qatargas 1) after Doha declined to renew loading at Ras Laffan Terminal. This includes
WHAT NEXT: the joint venture (JV) concession when it the construction of liquid products rundown
More than 12mn tonnes expired on December 31. lines, lean gas pipeline for gas delivery into QP’s
per year of long-term gas domestic gas grid, the expansion of the Ras Laf-
supply contracts kick Expansion award fan Terminal Operations (RLTO) product stor-
off this month as Qatar On January 3, QatarEnergy announced that age and loading facilities, monoethylene glycol
solidifies already strong McDermott’s contract would cover EPCI work (MEG) storage and transfer facilities expansion,
ties with Asian consumer for the offshore scope of the North Field Expan- and CO2 sequestration pipeline and associated
nations. sion. This includes 13 “normally unmanned” facilities at CO2 injection wellheads.
wellhead platform topsides, eight of which are Last year’s NFE awards also included a $1.7bn
for NFE and five for NFS, as well as connecting EPCI contract with Italy’s Saipem covering var-
pipelines and the shore approaches for the NFE ious offshore facilities, a $2bn lump-sum EPC
pipelines, beach valve stations and buildings. contract with Samsung C&T for the expansion
It added that the jackets and the pipelines for of LNG storage and loading facilities at Ras Laf-
the NFS project will be subject to a separate ten- fan and a $13bn EPC deal with a JV between
der that is expected to be awarded during the Chiyoda and Technip Energies covering the

The award comes
just two days after
QatarEnergy assumed
full control over the
Qatargas Liquefied
Natural Gas Company
Ltd (Qatargas 1).

P6 www. NEWSBASE .com Week 01 07•January•2021