Page 4 - DMEA Week 06 2021

DMEA COMMENTARY DMEA

Qatar greenlights $29bn

LNG expansion plan

Qatar has pushed ahead with its expansion plans, undeterred by market

turbulence over the past year thanks to its low production costs

QATAR LNG frontrunner Qatar has signed off on a with associated facilities for gas treatment, NGL
$29bn expansion of its liquefaction capacity, at a recovery and helium extraction and refining.
WHAT: time when most other suppliers are holding back “This was the main contract we were waiting
Qatar Petroleum has on new investments. to sign to finalise the costs of the project,” Qatar’s
approved the $29bn NFE State-owned Qatar Petroleum (QP) took a energy minister and QP CEO Saad al-Kaabi said
LNG expansion. final investment decision (FID) on February 8 at a signing ceremony in Doha. QP intends to
on North Field East (NFE), which will expand award a contract for storage tanks within the
WHY: Qatar’s LNG production capacity from 77mn to next two weeks and all other project-related
Qatar Petroleum has 110mn tonnes per year (tpy). First gas expected deals by the end of the year.
approved the $29bn NFE in late 2025 and the development should reach Air Products was hired last year to provide
LNG expansion. full capacity in 2027. According to Wood the project’s liquefaction technology and equip-
Mackenzie, it is the largest single LNG project ment, while Baker Hughes was picked for its
WHAT NEXT: ever sanctioned, and will likely be the biggest main compressors and turbines.
Doha has said it will upstream investment to be approved this year. QP is also planning an expansion in its fleet of
finalise international QP has also awarded the main engineer- LNG carriers, to carry North Field’s extra gas to
partnerships to invest in ing contract for NFE to Japan’s Chiyoda and markets. The company signed a deal worth $3bn
the project by the end of France’s Technip, after a selection process that to reserve a significant portion of China State
the year. ran for over a year. The contract’s scope covers Shipbuilding Corp.’s construction capacity at the
the construction of four 8mn tpy LNG trains, Hudong-Zhonghua shipyard for the purpose.

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