Page 6 - MEOG Week 07 2021
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MEOG COMMENTARY MEOG
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 “This was the main contract we were waiting
$29bn expansion of its liquefaction capacity, at a to sign to finalise the costs of the project,” Qatar’s
time when most other suppliers are holding back energy minister and QP CEO Saad al-Kaabi said
WHAT: on new investments. at a signing ceremony in Doha. QP intends to
Qatar Petroleum has State-owned Qatar Petroleum (QP) took a award a contract for storage tanks within the
approved the $29bn NFE final investment decision (FID) on February 8 next two weeks and all other project-related
LNG expansion. on North Field East (NFE), which will expand deals by the end of the year.
Qatar’s LNG production capacity from 77mn to Air Products was hired last year to provide
WHY: 110mn tonnes per year (tpy). First gas expected the project’s liquefaction technology and equip-
NFE will raise Qatar in late 2025 and the development should reach ment, while Baker Hughes was picked for its
liquefaction capacity to full capacity in 2027. According to Wood main compressors and turbines.
110mn tpy. Mackenzie, it is the largest single LNG project QP is also planning an expansion in its fleet of
ever sanctioned, and will likely be the biggest LNG carriers, to carry North Field’s extra gas to
WHAT NEXT: upstream investment to be approved this year. markets. The company signed a deal worth $3bn
Doha has said it will QP has also awarded the main engineering to reserve a significant portion of China State
finalise international contract for NFE to Japan’s Chiyoda and France’s Shipbuilding Corp.’s construction capacity at the
partnerships to invest in Technip, after a selection process that ran for Hudong-Zhonghua shipyard for the purpose.
the project by the end of over a year. The contract’s scope covers the con-
the year. struction of four 8mn tpy LNG trains, with asso- Emboldened by low costs
ciated facilities for gas treatment, NGL recovery The FID comes after a turbulent year for the
and helium extraction and refining. global LNG industry.
P6 www. NEWSBASE .com Week 07 17•February•2021