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

  • Parent: Qatar Petroleum
  • Location: Persian Gulf offshore Qatar
  • Coordinates: 26.327561, 51.670498 (exact)
  • Capacity: 48 mtpa: 6 trains x 8 mtpa per train[2]
  • Additional Proposed Capacity:
  • Cost: Trains 1-4 (Qatar North Field East) US$28.75 billion[3]
  • Financing: Part financing from a US$12.5 billion bond issue[4]
  • Status: Proposed
  • Type: Export
  • Start Year: Trains 1-2: 2025; Trains 3-4: 2026; Trains 5-6: 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.[2][5] In November 2019 Qatar Petroleum announced plans to build two additional 8-mtpa trains and commission them by 2027.[2][6] 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.[5]

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.[7]

In February 2021, Qatar Petroleum 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.[7]

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]

Financing

Bloomberg reported in April 2021 that Qatar Petroleum 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 Qatar Petroleum had invited banks to arrange what would be its first dollar denominated bonds.[8]

In June 2021, Reuters reported that Qatar Petroleum 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. Qatar Petroleum'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.[9] It was confirmed at the end of June that the banks helped Qatar Petroleum raise US$12.5 billion in the biggest bond issue in an emerging markets country so far in 2021. Qatar Petroleum'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

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External resources

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