Qatar Petroleum Constructs the World's Largest LNG Project Ever

Source: www.gulfoilandgas.com 2/8/2021, Location: Middle East

Qatar Petroleum took the final investment decision for developing the North Field East Project (NFE), the world’s largest LNG project, which will raise Qatar’s LNG production capacity from 77 million tons per annum (MMTPA) to 110 MMTPA.

In addition to LNG, the project will produce condensate, LPG, ethane, sulfur and helium. It 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.

The decision to proceed with the investment was announced during a signing ceremony held to celebrate the execution of the project’s key onshore engineering, procurement and construction (EPC) contract. The contract was signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, Mr. Kazushi Okawa, the Chairman of the Board and CEO of Chiyoda Corporation, and Mr. Arnaud Pieton, the President of Technip Energies, in the attendance of senior executives from Qatar Petroleum, Qatargas, Chiyoda, and Technip.

The main scope of the EPC contract is the construction of 4 mega LNG trains with a capacity of 8 MMTPA each, with associated facilities for gas treatment, natural gas liquids recovery, as well as helium extraction and refining within Ras Laffan Industrial City.

Speaking at the signing ceremony, His Excellency Mr. Al-Kaabi thanked executives in attendance from Chiyoda and Technip, and said:

'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. The total cost of the NFE project will be 28.75 billion dollars, 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. 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.'

Highlighting the significance of this event in the context of the global LNG and energy industry, His Excellency said:

'This event is of particular importance as it comes at a critical time when the world is still reeling from the effects of a global pandemic and related depressed economies. This investment decision is a clear demonstration of the steadfast commitment by the State of Qatar to supply the world with the clean energy it needs.'

'Today’s decision carries even more significance considering that it encompasses a number of concrete environmental investments in support of our strong commitment to achieve the highest environmental standards and to provide a credible solution in the low-carbon energy transition. One of the most important environmental elements of the NFE project is its CO2 capture and sequestration (CCS) system that will be integrated with our wider CCS scheme in Ras Laffan, which -once fully operational- will be the largest of its kind in terms of capacity in the LNG industry, and will be one of the largest ever developed anywhere in the world.' His Excellency Minister Al-Kaabi added.

In addition to the CCS scheme, the NFE project will have a number of elements that provide this project with a unique positive environmental proposition, such as:

- a significant portion of the project’s electrical power needs will be provided from Qatar’s national power grid, and Qatar Petroleum is in the process of procuring such power from the 800 megawatt solar power plant currently under construction in Al-Kharsaah, in addition to a further 800 megawatts of solar power which Qatar Petroleum will construct in the near future as part of its plans to have a solar power portfolio of more than 4,000 megawatts by 2030;

- a ‘jetty boil-off gas’ recovery system, which will help reduce greenhouse gas emissions (GHG) by approximately a further 1 MMTPA of CO2 equivalent;

- the project will conserve 10.7 million cubic meters of water per year by recovering 75% of the plant’s tertiary water;

- NOx emissions will be reduced by 40% through the application of enhanced Dry Low NOx technology.

H.E. Mr. Al-Kaabi concluded his remarks by saying:

'I would like to express our sincere gratitude to His Highness Sheikh Tamim Bin Hamad Al Thani, The Amir of the State of Qatar, for His guidance and unwavering support to Qatar Petroleum and Qatar’s energy sector.'

The NFE project represents the first phase of LNG expansion in the State of Qatar, while the 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 (with a capacity of 8 MMTPA each) and associated offshore and onshore facilities. The NFS project was initiated as a result of Qatar Petroleum’s successful onshore appraisal activities in the North Field and targets the monetization of gas from the southern sector of the North Field. As these appraisal activities continue, Qatar Petroleum is evaluating further LNG capacity expansions beyond 126 MMTPA.


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