QatarEnergy has officially started construction on the North Field Expansion Project, which will increase Qatar’s liquefied natural gas (LNG) production capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2026.
The opening ceremony of the project in the industrial city of Ras Laffan was attended by Qatari Amir Sheikh Tamim bin Hamad Al Thani, who laid the foundation stone for the project, QatarEnergy said in a press release on Monday.
The first phase of the North Field expansion project will increase Qatar’s LNG production capacity to 110 Mtpa, while the second phase, called the North Field South Project (NFS), will further increase the country’s LNG production capacity from 110 Mtpa to 126 Mtpa. The project includes six megatrains, each with a production capacity of eight mtpa of LNG, four of which are part of the North Field East expansion project, and two are part of the North Field South expansion project, bringing a total of 48 mtpa to global LNG supplies, according to the statement.
In addition to LNG, the project will produce 6,500 tons per day of eta gas, which will be used as a feedstock in local petrochemical industries. The project will also produce about 200,000 barrels per day (bpd) of liquefied petroleum gas (propane and butane) and about 450,000 bpd of condensates, in addition to large quantities of helium and pure sulfur, according to the statement.
“At the local level, this project will have short-term and long-term impacts that will be reflected in all sectors of the Qatari economy and will significantly improve the State’s revenue,” Saad, Qatar’s Minister of State for Energy Affairs and Chairman and CEO of QatarEnergy. said Sherida Al-Kaabi. “This major expansion comes at a crucial time, as natural gas occupies a pivotal position in the energy mix in a world facing geopolitical turbulence and in dire need of clean energy sources that are in line with global environmental goals”.
“There is no doubt that these additional quantities of natural gas are of great importance, as they will play a prominent role in improving energy security, supporting a practical and realistic energy transition and ensuring fair and equitable access to cleaner energy for sustainable and sustainable growth, a better future for all,” Al-Kaabi added.
According to the release, project partners include TotalEnergies, Shell, ConocoPhillips, ExxonMobil, Eni, Sinopec and China National Petroleum Corporation (CNPC).
Last week, QatarEnergy announced an agreement with Korea’s HD Hyundai Heavy Industries (HHI) for the construction of 17 ultra-modern liquefied natural gas (LNG) carriers. The deal is valued at $3.79 billion (SAR 14.2 billion) and marks the start of the second phase of the company’s LNG vessel acquisition program, which will support its LNG production capacity in expansion from the North Field LNG expansion and nearby Golden Pass LNG export projects. Sabine Pass, Texas, as well as long-term fleet replacement requirements.
QatarEnergy and its subsidiaries now expect 77 new confirmed LNG vessels to be delivered, which includes the 60 vessels contracted by the company in the first phase of its procurement program. The 60 ships will be built at Korean and Chinese shipyards, the company said in an earlier press release, adding that it expects more to come.
In July, QatarEnergy announced a long-term condensate supply agreement with Dubai-based ENOC Group. Under the 10-year sales agreement, QatarEnergy will supply up to 120 million barrels of condensate to ENOC. The deal was by QatarEnergy, for and on behalf of Qatar Petroleum for the Sale of Petroleum Products Company Ltd., and ENOC Supply & Trading LLC, a subsidiary of ENOC.
The terms of the agreement allow the parties to further increase condensate volumes, as additional condensate volume is expected to be exported from Qatar once the North Field East and North expansion projects become operational Field South.
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