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
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