Qatar Petroleum 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 the Ras Laffan Industrial City as part of the North Field East (NFE) project, the company announced on Monday.
The Minister of State for Energy Affairs and President and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi, and the President and CEO of Samsung C&T, Oh Se-chul, signed the contract during a special ceremony held at Qatar Petroleum’s headquarters.
The contract, valued at more than $2 billion, was awarded on a lump sum basis and is the second major onshore EPC contract award for the NFE project, according to the company's statement.
'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,' Al-Kaabi was quoted as saying in the statement.
This contract allows for the expansion of existing infrastructure required to ensure the safe loading and timely delivery of Qatar's LNG cargoes to its international customers across the globe, he said.
Al-Kaabi emphasized that the scope of the contract includes three LNG tanks and three LNG loading berths for NFE, and options for two LNG tanks and one LNG berth for the North Field South (NFS) project, and all associated pipes, lines and loading lines.
'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,' he concluded.
On Feb. 8, 2021, Qatar Petroleum awarded the EPC contract for the construction of four LNG mega-trains with associated facilities to Japan's Chiyoda Technip joint venture.
The contract award for the expansion of the LNG storage and loading facilities is seen as an important milestone on the road to substantially increasing the country's LNG production capacity.
The NFE project will raise the country’s LNG production capacity from 77 million tons annually to 110 million tons.
Furthermore, the NFS project, the second phase of the planned LNG expansion, will further increase Qatar's LNG production capacity from 110 million tons annually to 126 million tons by 2027.
By Busranur Begcecanli