Qatar Petroleum awards Tecnicas Reunidas contract for North Field LNG expansion

Qatar Petroleum awarded Spain's Tecnicas Reunidas a contract for the North Field expansion, a project that will help boost the country's LNG output by 64% by 2027.

The engineering, procurement and construction contract will expand the existing liquid products (condensate, propane and butane) storage and loading facilities and increase the import facilities for mono-ethylene glycol within Ras Laffan Industrial City, QP said in a statement Aug. 24. The EPC contract will also build ancillary facilities and pipelines serving the North Field expansion project. QP didn't disclose the value of the contract.

"These new facilities will be utilized to handle liquid products from the four new LNG trains comprising the North Field East project, which is scheduled to start-up before the end of 2025," QP said. "The facilities will also support two new LNG trains comprising the North Field South project."

Qatar's LNG exports are set to increase by 64% via the two-phase North Field expansion project, raising capacity from 77 million mt/year to 126 million mt/year by 2027, and when complete, will make Qatar the leading exporter of LNG globally.

First gas

The first phase of the expansion will cost $28.75 billion -- making it one of the largest energy projects globally -- and boost Qatar's LNG production to 110 mt/year. First gas is expected by the market in Q1 2025, with four new 8 mt/year LNG trains coming online in three-to-six-month intervals. Under this timeline, the project would be fully commissioned by the end of 2026.

QP gave financial investment decision or FID to the North Field expansion project in February 2021.

Earlier in June, TotalEnergies, ExxonMobil and Royal Dutch Shell confirmed they are among the bidders for equity stakes. Eni, Chevron and ConocoPhillips are also understood to be in the running. QP has said the chosen companies, which will share a 30% stake of the project's first phase, will be announced in the coming months.