QP has awarded the Detail Design to Approved for Construction status for offshore jackets for the new North Field Expansion Project to McDermott. The Detailed Design of the jackets is an important step towards awarding the procurement, fabrication and installation (EPCI) contract by the end of this year, which will pave the way to commencing the drilling campaign in 2019.
Qatargas will execute the mega-project on behalf of QP, and will commence the ‘Detailed Engineering’ with McDermott for the Offshore Jackets in addition to the recently announced Onshore FEED with Chiyoda.
QP President and CEO Saad Sherida Al Kaabi described the contract award as ’… yet another milestone on the road to implementing one of the most ambitious gas projects in the southern sector of the North Field, and starting the first LNG production from the new LNG mega train by the end of 2023, thereby increasing our LNG production capacity from 77 of 100 million tonnes per annum.’
The project will add about one million barrels per day of oil equivalent to Qatar’s production. The awarded scope is part of a larger wide-ranging offshore scope, which consists of six wellhead platforms, jackets and associated intra-field and main trunk lines to shore, to deliver 4.6 billion standard cubic feet per day of gas from Qatar’s North Field. The offshore facilities will be integrated with the three new 7.8 mtpa mega LNG trains.
Nakilat has signed an agreement with Texas-based Excelerate Energy to establish a joint venture entity and acquire a 55% stake in a floating storage regasification unit (FSRU) as part of efforts to expand its global footprint.
Dr Mohamed bin Saleh Al Sada, Minister of Energy and Industry, described the agreement as ‘…pivotal to Qatar, as this is the first FSRU co-owned by a Qatari company, which paves the way for Qatari LNG to expand its outreach to developing and emerging markets. This will enable Nakilat to widen its international outreach and thus, secure its industry-leading position in the dynamic and competitive LNG market.’
Qatargas has awarded a five-year contract to Element Materials Technology (Element) to provide materials testing and failure analysis services. The contract consists of mechanical testing and metallurgical analysis, to be conducted by Element’s Qatar laboratory, with additional specialist services from Element’s Middle East group and its laboratories in Italy, the UK, The Netherlands and Singapore.
Work will be carried out both onsite and offsite, involving internal and external examination of pipework and pressure valves that have experienced demanding operational conditions. Metallurgical verification of the material condition will also be undertaken alongside chemical and corrosion testing.
Qatar possesses a competitive edge over other producers to cater to the LNG market according to Dr Al Sada. ‘With a forecast growth of 4–5% in LNG demand in the foreseeable future and with abundant proven gas reserves, Qatar is striving to further monetise its huge gas resources, and contributes to global energy security. It has invested substantially across the entire LNG value chain and established a reputation as a reliable LNG supplier to all corners of the globe, served by its own LNG fleet (the largest in the world) comprising 65 LNG Tankers.
‘Qatar currently supplies about a quarter of the world’s total LNG. It intends to remain the global leader in LNG supplies in the future by increasing its production by 30%, to be fully operational by 2024.’
Speaking of global demand for LNG the minister said: ‘There is no LNG supply glut. There may be a surplus of only 10 million tonnes per year (mtpa) of LNG in the early 2020s. In a 350 mtpa LNG market, this means that the market is practically in balance. And the global LNG market is expected to tighten up beyond 2024.’
Qatar considers Europe as a strategic market and currently supplies LNG to eight different destinations there. Its exports to the region in 2017 constituted about 35% of its global supply.
Qatargas has made an inaugural delivery of LNG to Pavilion Gas Pte Ltd, a wholly-owned subsidiary of Pavilion Energy. The shipment was delivered to the Singapore LNG Receiving Terminal on Jurong Island by Qatargas-chartered Q-Flex vessel Al Oraiq. Qatargas delivered a commissioning cargo to the Singapore LNG Receiving Terminal in 2013.
QP is also to supply Vietnam with up to 2 mtpa of LPG and Naphtha for a period of 15 years. The agreement will commence with the start of Vietnam’s first green-field petrochemical complex, which is being constructed on Long Son Island, 100 km southeast of Ho Chi Minh City. It is expected to begin production in 2022.