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Summary
- Qatar Petroleum is set to boost its LNG production capacity with an FID announced for the North Field East Project.
- Chiyoda Corporation and Technip Energies will provide the EPCC services for the world’s largest LNG project.
- First production from the project is expected in the last quarter of 2025.
In a major boost to the oil & gas sector, Qatar Petroleum has approved a final investment decision (FID) for an LNG project.
The project, entailing an investment of US$28.75 billion, will involve the construction of four mega LNG trains, each with a production capacity of 8 million tons per annum (MMTPA). Upon completion, the North Field East Project will be the largest LNG project ever globally.
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Qatar Petroleum has awarded the Engineering, Procurement, Construction and Commissioning (EPCC) contract for the project to CTJV, a joint venture of Chiyoda Corporation and Technip Energies.
Qatar to Reclaim the Top Spot in LNG Segment
In 2019, Australia emerged as the largest exporter of LNG, exporting a record locally produced LNG of 77.5 MMT.
Qatar settled for the second position by exporting 75 MMT of LNG. The North Field East Project is expected to boost the production by ~32 MMTPA, bringing the total annual production by the Middle Eastern country to 110 MMT PA.
Besides LNG, the project will also be engaged in the production of LPG, sulphur, helium, ethane and condensate.
The project being the world’s largest will also be the most-competitive LNG project in the world. The FID decision comes at a time when the oil & gas sector is struggling to remain profitable amid a low-price environment.
This project is the first phase of the LNG expansion plan of Qatar Petroleum. The next phase will involve the development of the North Field South (NFS) Project, which would extend the LNG production from 110 MMTPA to 126 MMTPA. The NFS project is expected to commence production from 2027.
One of the world’s largest non-associated gas fields, North Field has a recoverable reserve of over 900 trillion cubic feet (tcf).
LNG Projects in Australia
Australian oil & gas companies are most likely to give green signal to FIDs for LNG projects with investment value up to US$11 billion in 2021, as per reports.
Some of the most significant LNG projects in the country are Waitsia (Mitsui), Barossa (Santos) and Scarborough (Woodside). Apparently, Woodside stalled LNG projects of around US$53 billion in the wake of the dismal situation of the oil & gas industry in 2020.
Woodside has also proposed the expansion of its Pluto Project with the addition of second LNG train to boost the production capacity by 7.5MMTPA.
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With major companies injecting funds into various oil & gas projects, investors’ confidence is expected to get a boost.
