Qatar’s state-owned petroleum company Qatar Petroleum – which operates all oil and gas activities, including exploration, production, refining, transport, and storage in the country – has awarded a major engineering, procurement, and construction (EPC) contract to Samsung C&T Corporation for the expansion of the LNG storage and loading facilities located within Ras Laffan Industrial City as part of the North Field East (NFE) Project.
The contract, valued at more than $2bn, including options, was awarded on a lump sum basis and is the second major onshore EPC contract award for the NFE project.
On 8 February 2021, QP awarded the EPC contract for the construction of four LNG mega-trains with associated facilities to the Chiyoda Technip Joint Venture.
The second EPC contract award for the expansion of the LNG storage and loading facilities represents another important milestone on the road to substantially increasing the State of Qatar’s LNG production capacity.
Both contracts represent the culmination of front-end engineering and design work that began in early 2018.
When completed, the NFE Project will increase the State of Qatar’s LNG production capacity from 77 million tonnes per annum (MTPA) to 110 MTPA.
The second phase of the planned LNG expansion, the North Field South (NFS) Project, will further increase Qatar’s LNG production capacity from 110 MTPA to 126 MTPA by 2027.
The EPC contract was signed by the Minister of State for Energy Affairs, and the President and CEO of Qatar Petroleum, HE Saad Sherida Al-Kaabi, and by the President and CEO of Samsung C&T, Oh Se-chul during a ceremony at the Qatar Petroleum headquarters in the presence of other senior officials from Qatar Petroleum and Qatargas.
Commenting on the contract award, HE Saad Sherida Al-Kaabi, said: “The award of this contract marks another concrete step towards the further development of our natural gas resources, and enhancing our position as the world’s largest, most reliable LNG producer.”
HE Al-Kaabi added: “This contract provides for the expansion of existing infrastructure required to ensure the safe loading and on-time delivery of our LNG cargoes to our 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.
“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.”
As per Qatar Petroleum’s established practice, special attention is paid to support the highest environmental standards by employing a high-efficiency design, and applying best available industry technologies to reduce gas and effluents emissions.
This contract, in particular, includes the expansion of systems that target the elimination of flaring during the loading of LNG ships. In addition, recovery of ‘jetty boil-off gas’ will help reduce greenhouse gas emissions (GHG).
