Qatar Petroleum Greenlights $29B LNG Project



Qatar Petroleum Greenlights $29B LNG Project
Qatar Petroleum has taken the final investment decision for developing the North Field East Project, which it describes as the world's largest LNG development.

Qatar Petroleum has revealed that it has taken the final investment decision for developing the North Field East Project (NFE), which it describes as the world’s largest LNG development.

The project, which is expected to have a total cost of $28.75 billion, will raise Qatar’s LNG production capacity from 77 million tons per annum (MMTPA) to 110 MMTPA, Qatar Petroleum outlined. The development is expected to start production in the fourth quarter of 2025 and its total production will reach about 1.4 million barrels oil equivalent per day, according to the company.

The decision to proceed with the investment was announced during a signing ceremony to celebrate the execution of the project’s key onshore engineering, procurement and construction (EPC) contract, which was awarded to CTJV, a joint venture between Chiyoda Corporation and Technip Energies. The value of the deal was not disclosed, but Technip described the contract as “major”.

The main scope of the EPC contract is the construction of four mega LNG trains with a capacity of eight MMTPA each, with associated facilities for gas treatment, natural gas liquids recovery, as well as helium extraction and refining within Ras Laffan Industrial City.

“The execution of this EPC contract marks the commencement of the construction of the North Field East LNG Project, and is a significant landmark in Qatar Petroleum's strategic growth journey in a sustainable manner,” Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, said in a statement posted on Qatar Petroleum’s website.

“The total cost of the NFE project will be $28.75 billion, making it one of the energy industry’s largest investments in the past few years, in addition to being the largest LNG capacity addition ever, and the most competitive LNG project in the world,” he added.

“This project will generate substantial revenues for the state of Qatar and will have significant benefits to all sectors of the Qatari economy during the construction phase and beyond,” he went on to say.

Commenting on the EPC deal, Arnaud Pieton, the president of Technip Energies, said, “we are extremely honored to have been awarded by Qatar Petroleum this prestigious mega LNG project along with our long-time partner, Chiyoda”.

“It demonstrates the continuity and the strength of our joint venture after the successful delivery of the six existing mega LNG trains. This award reflects Technip Energies’ ability to integrate technologies towards low carbon LNG and supports our vision to accelerate the energy transition journey,” he added.

Qatar Petroleum highlights that the NFE project represents the first phase of LNG expansion in the State of Qatar. The company also notes that a second phase, referred to as the North Field South Project (NFS), will further increase Qatar’s LNG production capacity from 110 MMTPA to 126 MMTPA. With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains and associated offshore and onshore facilities. Qatar Petroleum is also evaluating further LNG capacity expansions beyond 126 MMTPA, its website notes.

To contact the author, email andreas.exarheas@rigzone.com



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