Qatar North Field LNG Terminal

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Qatar North Field LNG Terminal is a proposed LNG terminal in the Persian Gulf offshore Qatar. It would be the world's largest LNG project.[1]

Location

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Project details

North Field East Expansion (Phase 1)

  • Owner: QatarEnergy
  • Parent: QatarEnergy
  • Location: Persian Gulf offshore Qatar
  • Coordinates: 26.327561, 51.670498 (approximate)
  • Capacity: 33 mtpa[2]
  • Trains: 4 megatrains[2]
  • Cost: US$28.75 billion[3]
  • Financing: Part financing from a US$12.5 billion bond issue[4]
  • Status: Proposed, FID
  • FID: 2021
  • Type: Export
  • Start year: Trains 1-2: 2026[5][6]; Trains 3-4: 2026–2027[5][6]
    • Trains 1–2: originally 2025; Trains 3–4: originally 2026

North Field South Expansion (Phase 2)

  • Owner: QatarEnergy
  • Parent: QatarEnergy
  • Location: Persian Gulf offshore Qatar
  • Coordinates: 26.327561, 51.670498 (approximate)
  • Capacity: 16 mtpa[7]
  • Trains: 2 megatrains
  • Status: Proposed, pre-FID
  • FID: 2022[8]
  • Type: Export
  • Cost: US$15-20 billion[8]
  • Start year: 2027

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The North Field project was originally announced in September 2018 with the release of a plan to build four 8-mtpa trains and bring them online every six months beginning in 2023.[9][10] In November 2019 QatarEnergy, then Qatar Petroleum, announced plans to build two additional 8-mtpa trains and commission them by 2027.[9][11] In April 2020 it was announced that commissioning of the first two trains has been delayed until 2025 due to logistical and economic problems caused by the Covid-19 pandemic.[10]

The first four trains, called the North Field East Expansion will be developed as the first phase of the project. The last two trains, called the North Field South Expansion, will be developed as the second phase of the project.[12]

The project will increase Qatar’s LNG production capacity by about 50%, and will produce LNG, condensate, LPG, ethane, sulphur, and helium. The project also includes a carbon capture and storage (CCS) facility to capture CO2 emissions from the project. The CCS facility will be the largest of its kind in the LNG industry, and will be part of a CO2 capture and storage cluster in Ras Laffan in Qatar. Power for the facility will be sourced from an 800 MW solar power plant under construction nearby.[13]

In February 2021, QatarEnergy took the final investment decision (FID) for trains 1-4 of the project, known as Qatar North Field East, at the same time awarding a US$13 billion onshore engineering, procurement, construction and commissioning contract for the project to Japanese engineering group Chiyoda and the French company Technip Energies.[3] The cost of the project was placed at US$28.75 billion.[13]

QatarEnergy said that it would release detailed plans for the North Field South project within a year of March 2021.[14]

In April 2021, both the French energy major Total and CNOOC, one of China's three major state-owned oil and gas producers, publicly expressed their interest in joining the project.[1]

Qatar Petroleum changed its name to QatarEnergy in October 2021.[15]

In April 2022, QatarEnergy awarded a major engineering, procurement, and construction (EPC) contract for the North Field East LNG expansion to a JV between Técnicas Reunidas and Wison.[16]

Financing

Bloomberg reported in April 2021 that QatarEnergy was planning a major bond issue, potentially as early as the second quarter of 2021, to bring in between US$7 billion and US$10 billion to finance the North Field LNG Terminal. An unnamed source suggested that QatarEnergy had invited banks to arrange what would be its first dollar denominated bonds.[17]

In June 2021, Reuters reported that QatarEnergy has hired Citi and JPMorgan Chase to coordinate the bond issue, with Bank of America, Deutsche Bank, Goldman Sachs, HSBC, MUFG, QNB Capital and Credit Suisse also participating in the fundraising. QatarEnergy's turning to the international bond markets is attributed to Middle East energy companies having to raise capital via alternative means following the detrimental financial impacts of the COVID-19 pandemic and oil prices collapsing in 2020.[18] It was confirmed at the end of June that the banks helped QatarEnergy raise US$12.5 billion in the biggest bond issue in an emerging markets country so far in 2021. QatarEnergy's bonds' prospectus said that the capital raised will be used for general operational and investment purposes, including for the North Field expansion project.[4]

Articles and resources

References

  1. 1.0 1.1 Kenji Kawase, CNOOC eyes $29bn Qatar LNG project to aid Xi's CO2 target, Nikkei Asia, Apr. 22, 2021
  2. 2.0 2.1 The LNG Industry: GIIGNL Annual Report. GIIGNL. May 2022.
  3. 3.0 3.1 'Largest LNG Project Ever:' Qatar Petroleum Sanctions North Field East Project, Offshore Engineer, Feb. 9, 2021
  4. 4.0 4.1 Yousef Saba, Qatar Petroleum grabs $12.5 bln in emerging market bonds record, Reuters, Jun. 30, 2021
  5. 5.0 5.1 "Qatar Offers Germany LNG From Its US Plant Starting in 2024". 2022-05-20. Retrieved 2022-06-29.
  6. 6.0 6.1 "ExxonMobil and QatarEnergy to expand LNG production with North Field East agreement". ExxonMobil. Retrieved 2022-07-26.
  7. Ugal (58af034cf1a22), Nishant (2022-05-03). "Two in race for liquefaction trains prize at Qatar's giant North Field expansion | Upstream Online". Upstream Online | Latest oil and gas news. Retrieved 2022-05-27.
  8. 8.0 8.1 Ugal (58af034cf1a22), Nishant (2022-01-14). "Contractors submit bids for Qatargas North Field South offshore facilities | Upstream Online". Upstream Online | Latest oil and gas news. Retrieved 2022-05-27.
  9. 9.0 9.1 "GIIGNL 2021 Annual Report”, page 40, GIIGNL, accessed May 4, 2021.
  10. 10.0 10.1 Qatar Petroleum delays start-up of North Field LNG expansion due to COVID-19, S&P Platts Global, Apr. 7, 2020
  11. Dahlia Nehme, Qatar plans to boost LNG production to 126 mln T by 2027, CNBC, Nov. 25, 2019
  12. Profiling North Field East, the world’s largest-ever LNG project. NS Energy. February 10, 2021.
  13. 13.0 13.1 Dahlia Nehme, Qatar's North Field East LNG liquefaction project, carbon capture, and the future of LNG, Clyde & Co, Apr. 12, 2021
  14. Parraga, Ron Bousso, Marianna (2021-03-02). "Qatar to detail next LNG expansion within a year". Reuters. Retrieved 2022-05-27.
  15. Qatar Petroleum becomes Qatar Energy. Offshore Technology. October 15, 2021.
  16. "QatarEnergy awards EPC contract for North Field East LNG expansion". Offshore Energy. 2022-04-28. Retrieved 2022-05-27.
  17. Archana Narayanan, Qatar Petroleum Plans $10 Billion Bond Sale for Gas Expansion, Bloomberg, Apr. 25, 2021
  18. Yousef Saba, Qatar Petroleum hires banks for four-tranche jumbo bond sale, Reuters, Jun. 28, 2021

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