Analysis

Qatar Forges Ahead With North Field Expansion Project

– In 2017, Qatar Petroleum (QP) announced plans to raise LNG production capacity from 77 million tonnes to 110 million tonnes per year.

 

– In April 2017, QP declared a new expansion/development project of the North Field.

 

– On November 14th, 2018, the IMF released the findings of its visit to Qatar. The IMF stated the following: “The near- to- medium-term outlook for the Qatari economy is benefiting from increased oil prices and prudent macroeconomic policies. We anticipate overall real GDP growth of 3.1 percent in 2019, with still robust non-hydrocarbon growth and recovery in oil and gas production. Over the course of 2020-2023, real GDP growth of about 2.7 percent annually is projected, underpinned by still significant public infrastructure spending, expansion of liquid natural gas production, and the hosting of 2022 World Cup”.

 

– QP selected Japan’s Chiyoda Corp for the front-end engineering and design of the onshore facilities of the North Field expansion project. Furthermore, it awarded McDermott a contract for the offshore engineering work.

 

– On April 15th, 2019, QP issued a tender package for the engineering procurement and construction (EPC) of four liquified natural gas (LNG) mega-trains of its North Field Expansion (NFE) project. The completion of the NFE will boost Qatar’s GDP growth.

 

 

North Field Expansion (NFE) project

On April 15th, 2019, Qatar and McDermott International, a Houston, Texas, based multinational engineering, procurement, construction and installation company, signed a contract worth $50 to $250 million.

The contract stipulates that McDermott will provide engineering, procurement, construction and installation (EPCI) of four liquified natural gas (LNG) mega-trains as part of country’s North Field Expansion objective, which will increase Qatar’s LNG production from 77mm tonnes per annum (Mta) to 110mta by 2024. The EPCI of the four mega-LNG trains will be equipped with gas and liquid treating facilities, ethane and liquified petroleum gas production and fractionation, a helium plant, and utilities infrastructure to support the processing units.

McDermott International has planned to deploy its project management and engineering teams in Doha in order to monitor and fulfill the terms of the contract. Works are expected to begin immediately. Following the tender package, Qatar’s Minister of Energy, HE Saad Sherida al-Kaabi, stated the following: “I am pleased to announce that further contract awards related to the project will be announced shortly”. This illustrates Qatar’s commitment and plans to further expand extraction and production capacity of the North Field.

The North Field, which is located off the north-east shore of the Qatar peninsula, is one of the largest non-associated natural gas fields in the world. It has been estimated that the North Field hosts more than 900 trillion standard feet (tscf) of reserves. Previously, Qatar awarded a different contract to McDermott for the fabrication and installation of eight NFE offshore jackets, and the early site works for the onshore project to the joint venture between Consolidated Contractors Company (CCC) and Teyseer Trading and Contracting Company. This project was entrusted to Qatargas, a subsidiary of QP.

 

 

Cover Image Source: Reuters (REUTERS/Naseem Zeitoon/File Photo)

 

 

 

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