IMG.gif

Tecnicas Reunidas Wins Qatar Storage Contract

Copyright © 2021 Energy Intelligence Group

Qatar Petroleum (QP) is pressing ahead with its big LNG expansion project, awarding a contract to Spain's Tecnicas Reunidas to expand existing storage and loading facilities for condensate, propane and butane. The contract also includes the expansion of import facilities for monoethylene glycol and pipelines for the 48 million ton per year North Field expansion project. Its value was not disclosed. Qatari Energy Minister and QP CEO Saad al-Kaabi said the award of the contract "supports the further development of Qatar's substantial natural gas resources and reinforces our position as the world's largest LNG producer." QP also confirmed on Tuesday that the the 32 million ton/yr first phase of the expansion -- also known as the North Field East project -- is "scheduled to start up before the end of 2025." Samsung to Build LNG Tanks In March of this year a contract worth more than $1.6 billion was awarded to South Korea's Samsung to build LNG storage tanks and loading berths for the first phase. If the 16 million ton/yr second phase -- also known as the North Field South project -- is sanctioned as expected, the value of the Samsung contract will rise to more than $2 billion (LNGI Mar.1'21) Similarly, the contract with Tecnicas Reunidas covers both phases of the planned expansion, even though a final investment decision (FID) has not yet been made made for the second phase. A separate contract to build storage and loading facilities for sulfur still has to be awarded. Total capital spending required under the first phase of the expansion is projected at $28.75 billion. QP awarded a $13 billion contract to build the four LNG liquefaction trains for the first phase to Chiyoda and Technip in February of this year (IOD Feb.8'21). Majors Compete for Equity Stake Foreign investors are being offered a combined equity stake of up to 30% in the first phase of the expansion project, and an announcement could be made as early as next month. Exxon Mobil, Royal Dutch Shell, ConocoPhillips, Total Energies, Chevron and Eni have all been short-listed as potential equity investors. Exxon, Shell and Total have all publicly acknowledged that they have submitted bids, and the others are also believed to have done so, drawn by Qatar's low-cost and relatively low-carbon LNG (IOD Jul.13'21). QP is also believed to have sounded out some of its key Asian LNG customers as potential investors in the project, with reports of discussions with both Chinese and Japanese firms. Competition among bidders is likely to be intense and the project will serve as an important barometer of investors' appetite for big upstream oil and gas opportunities after the global economic contraction in 2020 and as many of the majors have started to shift capital spending to low-carbon energy. The first phase of Qatar's LNG expansion will raise the country's capacity from around 77 million tons/yr today to 110 million tons/yr, with the second phase targeting a further increase to 126 million tons/yr. Rafiq Latta, Nicosia Qatar's LNG Expansion

Norway's new center-left government has pledged to develop the country's oil and gas industry, rather than dismantling it.
Fri, Oct 15, 2021
US crude’s march above $80 has left many wondering how short-cycle shale suppliers might respond. Energy Intelligence examines the factors in play.
Fri, Oct 15, 2021
US natural gas futures tumbled into the weekend, capping another volatile week.
Fri, Oct 15, 2021