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Qatar Petroleum has awarded a significant engineering, procurement and construction (EPC) contract to Samsung C&T Corporation for the expansion of LNG storage and loading facilities located within the Ras Laffan Industrial City as part of its North Field East (NFE) project.
The contract was signed on Monday by His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President and CEO of Qatar Petroleum, and Oh Se-chul, President and CEO of Samsung C&T during a ceremony at Qatar Petroleum Headquarters.
The contract, valued at more than $2 billion (including options), was awarded on a lump sum basis and is the second major onshore EPC contract award for the NFE project.
In early February 2021, a joint venture between Chiyoda Corporation and Technip Energies secured a notable contract for the construction of four LNG trains with a capacity of 8 million tonnes per annum (Mtpa) each with associated facilities for gas treatment, natural gas liquids recovery as well as helium extraction and refining within the Ras Laffan Industrial City.
Both contracts represent the culmination of front-end engineering and design work that began in early 2018. When completed, the NFE project is anticipated to increase the State of Qatar’s LNG production capacity from 77 million to 110 Mtpa. The second phase of the planned LNG expansion, the North Field South (NFS) Project, is expected to increase Qatar’s LNG production capacity from 110 to 126 Mtpa by 2027.
Regarding the new contract, H.E. Saad Sherida Al-Kaabi said: “The award of this contract marks another concrete step towards the further development of [Qatar’s] natural gas resources, and enhancing our position as the world’s largest, most reliable LNG producer.”
“This contract provides for the expansion of existing infrastructure required to ensure the safe loading and timely delivery of [Qatar’s 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 the NFS project, and all associated pipes, lines and loading lines.”
He concluded: “We look forward to working with Samsung to deliver this important component of the NFE project in a safe, timely and efficient manner. I am delighted that detailed engineering activities under the contract will take place in Qatar, thus levering the growing technical capabilities for the development of major projects in the country.”