February 12, 2021 Read More →

Qatar moving forward with major LNG expansion

Reuters:

Qatar Petroleum (QP), the world’s top liquefied natural gas (LNG) supplier, signed a contract on Monday for the first phase of its North Field LNG project expansion, aiming to boost the country’s LNG output by 40% a year by 2026. The expansion, which will take Qatar’s LNG production capacity to 110 million tonnes per annum (mtpa) from 77 million mtpa, is the largest single LNG project ever to be sanctioned, according to consultancy Wood Mackenzie.

QP signed a contract covering major onshore engineering, procurement and construction at the expansion project, known as North Field East, with a joint venture between Chiyoda and Technip. Production from that phase will start by the fourth quarter of 2025 and reach full capacity by late 2026 or early 2027, QP’s CEO Saad al-Kaabi said in a virtual news conference.

“The total cost of the project will be $28.7 billion, making it one of the industry’s largest investments in the past few years and largest LNG capacity ever built,” Kaabi said.

A second phase, known as the North Field South project, is expected to lift Qatar’s LNG production capacity further to 126 mtpa by 2027.

At a long-term breakeven price of just over $4 per million British thermal units, Qatar’s LNG production is at the bottom of the global LNG cost curve, alongside Arctic Russian projects, Farrer said.

[Rania El Gamal]

More: Qatar Petroleum signs deal for mega-LNG expansion

Comments are closed.