QatarEnergy Serves Up $10B Deal for NFS Project

QatarEnergy Serves Up $10B Deal for NFS Project
'QatarEnergy is proud to announce yet another significant milestone in the world's largest LNG project'.
Image by selensergen via iStock

QatarEnergy has revealed that it has awarded an engineering, procurement, and construction (EPC) contract for the North Field South (NFS) project to a joint venture of Technip Energies and Consolidated Contractors Company (CCC).

The EPC contract’s value is around $10 billion, according to QatarEnergy, which outlined in a statement posted on its website that its scope covers the construction of two mega LNG trains with a capacity of eight million tons per annum each, as well as associated facilities for gas treatment, natural gas liquids recovery, and helium extraction and refining within Ras Laffan Industrial City.

NFS, together with the North Field East (NFE) project, will increase Qatar’s LNG production capacity from the current 77 million tons per annum to 126 million tons per annum, QatarEnergy highlighted in the statement. The company holds a 75 percent stake in the NFS project and has signed partnership agreements with TotalEnergies, Shell, and ConocoPhillips for the remaining 25 percent, it pointed out.

“QatarEnergy is proud to announce yet another significant milestone in the world’s largest LNG project, reinforcing our commitment to meeting the global demand for natural gas,” Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, said in a company statement.

“The NFS project is a unique development that minimizes its environmental footprint by design. It includes one of the largest CO2 capture and sequestration facilities and constitutes an important step towards achieving QatarEnergy’s target of more than 11 MTPA of CO2 capture and sequestration by 2035,” he added.

In a statement posted on its site, Technip Energies confirmed the award, noting that a joint venture led by the company, in partnership with CCC, had won a “major” Engineering, Procurement, Construction and Commissioning (EPCC) contract by QatarEnergy for the onshore facilities of the NFS project. The company defines a “major” award as being worth more than $1 billion (EUR 1 billion) of revenue.

“We are extremely honored to have been awarded by QatarEnergy this mega LNG project, along with our long-standing partner CCC, a leading construction company for LNG trains,” Arnaud Pieton, the CEO of Technip Energies, said in a company statement.

“This award is a testament to the trust, extent, and strength of our relationship with QatarEnergy. This new project also reflects our leadership in the LNG market as well as our proven ability to integrate technologies towards low carbon LNG, critical in solving the trilemma for affordable, available, and sustainable energy,” he added in the statement.

In a statement posted on CCC’s site, Jamal Bahlawan, the CEO of the company, said, “we are proud and honored to have been awarded this mega LNG project by QatarEnergy, a remarkable achievement built on numerous successful collaborations between Technip Energies and CCC”.

“CCC has decades of experience delivering LNG projects, in Qatar and around the world, and this award marks yet another significant milestone for CCC and demonstrates the continuity and strength of our presence as one of the leading construction companies in the region,” he added in the statement.

“By combining CCC’s and Technip Energies’ expertise and track records, we will once again deliver a world-class LNG project that will further nurture our solid relationship with our clients and partners,” Bahlawan continued.

On September 24, 2022, QatarEnergy announced that it had selected TotalEnergies as the first international partner in the NFS expansion project and on October 23, 2022, QatarEnergy noted that it had selected Shell as its second international partner in the NFS project. On October 30, 2022, QatarEnergy announced that it had selected ConocoPhillips as its third and final international partner in the development.

TotalEnergies and Shell will each have an effective net participating interest of 9.375 percent in the NFS project, while ConocoPhillips  will have an effective net participating interest of 6.25 percent, QatarEnergy revealed last year.

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



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