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Monday, October 18, 2021

QP, Samsung sign major $1.9 billion LNG deal


The massive deal comes as Doha expand its oil production to become the world’s largest producer of liquified natural gas [LNG] by 2030.

Qatar Petroleum signed  a $1.9 billion-worth contract with Samsung C&T Corporation for the expansion of the LNG storage and loading facilities at the major North Field East [NFE] Project, the leading gas company announced on Monday.

According to Saad Sherida Al Kaabi Minister of State for Energy Affairs, the engineering, procurement, and construction [EPC] contract helps ensure the safe loading and immediate loading of LNG deliveries to international customers “across the globe”.

“Its scope includes three LNG tanks and three LNG loading berths for NFE, and options for two LNG tanks and one LNG berth for NFS project, and all associated pipes, lines and loading lines,” he added.

This is the second major onshore EPC contract award after a deal announced with Chiyoda Technip Joint Venture on February 8 to establish four LNG mega-trains with the necessary facilities.

Read also: Qatar on track to become world’s largest LNG producer: report

The contracts will help Qatar reach its goal to become the world’s largest LNG producer, with a production capacity that will increase from 77 million to 110 tonnes per annum [MTPA] in the first phase, and from 110 MTPA to 126 in the second by 2027.

“We look forward to working with Samsung to deliver this important component of the North Field Expansion project in a safe, timely, and efficient manner. I am delighted that the detailed engineering activities under the contract will take place in Qatar, thus leveraging the growing technical capabilities for the development of major projects in the country,” said Al Kaabi.

The NFE project will raise Qatar’s liquefaction capacity to 110 million tonnes per year [tpy] out of the global total of 600 million tonnes per year, or 18% of the world’s annual supply. 

The project will likely trigger a rise in oil prices and energy projects worth about $100 billion in 2021, of which the Middle East is set to contribute almost 40%.

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