Contract award for world’s largest gas field delayed until next year

QatarEnergy LNG’s multibillion-dollar North Field Production Sustainability (NFPS) project has been hit with fresh delays, potentially pushing back the strategic contract award until next year at least.

Qatar is spending heavily on the massive expansion of its North Field while also executing the multi-phase offshore sustainability project.

The most recent project comprises the fourth package (EPCI 4) of the NFPS development and is expected to be worth more than $4 billion.

The operator recently informed bidders that technical bid submission for EPCI 4 has been pushed back until early next year, delaying the contract award by at least five months, two people familiar with the development told Upstream.

“We were hoping to conclude the EPCI 4 bid before the end of this year, but it appears that the contract award could stretch until the second quarter of 2024.”

Bids for the coveted engineering, procurement, construction and installation deal were initially due in August, but the submission was delayed on several occasions, another source noted.

Technical bids are now due for submission by 8 January, Upstream understands.

One source pointed out that there could be further delays in the project award, as Qatar prioritises the $50 billion-plus expansion of its giant North Field, the largest gas field in the world.

“The project has been facing delays as Qatar wants to step up work on the North Field expansion. We expected further delays in the NFPS bid process,” the source noted.

QatarEnergy, the parent company of QatarEnergy LNG (previously Qatargas) has yet to respond to an Upstream query on the NFPS project.

North field expansion

The project aims to raise the country’s liquefied natural gas production capacity from 77 million tonnes per annum to 126 million tpa by 2026.

Up to four international contractors or consortiums have been pre-qualified for participating in the EPCI 4 tender.

The list includes a grouping of McDermott International of the US and South Korea’s Hyundai Heavy Industries, with Italy’s Saipem, India’s Larsen & Toubro (L&T) and China’s Offshore Oil Engineering Company (COOEC) each qualifying individually.

Some of the contenders would tie up forming consortiums, while a few others could even bid alone, sources have suggested.

Giant platforms

EPCI 4 requires two giant offshore compression systems that could together involve up to 100,000 tonnes of fabrication, Upstream understands.

Each system includes a compression platform, flare platform, interconnected bridge, living quarters and other associated facilities.

The compression platforms are expected to weigh between 25,000 and 35,000 tonnes, while the overall structures could involve up to 100,000 tonnes of fabrication, sources said.

Qatargas is expected to offer at least seven giant offshore compression platforms in separate phases, and the work will be carried out over several years.

Saipem earlier said the project will include “two of the largest fixed steel jacket compression platforms ever built”, as well as flare platforms, living quarters, interconnecting bridges and interface modules.