The $29bn North Field Expansion (NFE) project aimed at boosting Qatar’s LNG output by over 40% over the next few years, will "power" the country’s economic recovery, researcher Dun & Bradstreet said in a report.
State-owned Qatar Petroleum (QP) has announced a final investment decision (FID) and the selection of a joint venture with Chiyoda (Japan) and TechnipFMC (France) to build the four new 7.8mn tonnes per year (tpy) LNG trains required for the first phase of the North Field Expansion (NFE) project.
According to Dun & Bradstreet, QP had initially envisaged awarding the main contract and selecting an international partner in early 2020, but this was delayed due to the pandemic, with several of QP’s potential international partners scaling back capital expenditure to preserve cash.
“The timing of the FID, coinciding with the near-completion of World Cup-related infrastructure, will support Qatar’s recovery, from H2, 2021,” Dun & Bradstreet noted.
“Combined with the lifting of the blockade early this year, which is set to boost the aviation and tourism sectors, developments in Qatar’s bedrock LNG industry will help drive growth of 2.5% this year,” Dun & Bradstreet said.
In its country outlook, Dun & Bradstreet noted, “The 2021 budget, approved in December, will also support growth, with 37% of expenditure allocated to major development projects. Government spending, at nearly $20bn, will create opportunities in the healthcare, education, and transportation sectors.”
Last month, QP took the final investment decision for developing the NFE project, the world’s largest LNG project, which will raise Qatar’s LNG production capacity from 77mn tonnes per year (mtpy) to 110 mtpy by 2025.
The project will also produce condensate, LPG, ethane, sulphur and helium.
It is expected to start production in the fourth quarter of 2025 and total production will reach about 1.4mn barrels oil equivalent per day.
The NFE project will be 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 Qatar and will have significant benefits to all sectors of the Qatari economy during the construction phase and beyond.
The NFE project has 'unique' positive environmental proposition in that 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 solar power plant currently under construction in Al-Kharsaah.
State-owned Qatar Petroleum (QP) has announced a final investment decision (FID) and the selection of a joint venture with Chiyoda (Japan) and TechnipFMC (France) to build the four new 7.8mn tonnes per year (tpy) LNG trains required for the first phase of the North Field Expansion (NFE) project.
According to Dun & Bradstreet, QP had initially envisaged awarding the main contract and selecting an international partner in early 2020, but this was delayed due to the pandemic, with several of QP’s potential international partners scaling back capital expenditure to preserve cash.
“The timing of the FID, coinciding with the near-completion of World Cup-related infrastructure, will support Qatar’s recovery, from H2, 2021,” Dun & Bradstreet noted.
“Combined with the lifting of the blockade early this year, which is set to boost the aviation and tourism sectors, developments in Qatar’s bedrock LNG industry will help drive growth of 2.5% this year,” Dun & Bradstreet said.
In its country outlook, Dun & Bradstreet noted, “The 2021 budget, approved in December, will also support growth, with 37% of expenditure allocated to major development projects. Government spending, at nearly $20bn, will create opportunities in the healthcare, education, and transportation sectors.”
Last month, QP took the final investment decision for developing the NFE project, the world’s largest LNG project, which will raise Qatar’s LNG production capacity from 77mn tonnes per year (mtpy) to 110 mtpy by 2025.
The project will also produce condensate, LPG, ethane, sulphur and helium.
It is expected to start production in the fourth quarter of 2025 and total production will reach about 1.4mn barrels oil equivalent per day.
The NFE project will be 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 Qatar and will have significant benefits to all sectors of the Qatari economy during the construction phase and beyond.
The NFE project has 'unique' positive environmental proposition in that 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 solar power plant currently under construction in Al-Kharsaah.