Qatar Petroleum has taken 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 mn 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 mn barrels of oil equivalent per day.
The decision to proceed with the investment was announced during a signing ceremony held recently to celebrate the execution of the project’s key onshore engineering, procurement and construction (EPC) contract. The contract was signed by HE Saad Sherida Al Kaabi, Minister of State for Energy Affairs, QP President and CEO; Kazushi Okawa, Chairman of the Board and CEO of Chiyoda Corporation; Arnaud Pieton, President of Technip Energies; and senior executives of QP, Qatargas, Chiyoda, and Technip.
The main scope of the EPC contract is the construction of four 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, HE Al Kaabi thanked the executives 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 USD28.75 bn, 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, HE added:
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.
Qatar Petroleum’s commitment to the environment
The decision carries even more significance as it encompasses a number of firm environmental investments in support of QP’s 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 the wider CCS scheme in Ras Laffan. Once fully operational, it 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.
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 QP is in the process of procuring such power from the 800-megawatt (MW) solar power plant currently under construction in Al Kharsaah, in addition to a further 800 MW 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 MW by 2030.
- ‘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 mn cubic metres of water a 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.
HE Al Kaabi expressed his sincere gratitude to The Amir, HH Sheikh Tamim nin Hamad Al Thani, 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 QP’s successful onshore appraisal activities in the North Field and targets the monetisation of gas from the southern sector of the North Field. As these appraisal activities continue, QP is evaluating further LNG capacity expansions beyond 126 MMTPA.
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