Qatargas has started the chase for at least four engineering, procurement and construction packages that form part of its giant offshore compression facilities project meant for the North Field, offshore Qatar.

Multiple people with direct knowledge of the tender process told Upstream that the Qatari state-controlled giant recently sought interest from leading international EPC contractors for participating in the tender process destined for the first phase of the giant compression project.

The offshore gas-compression facilities are needed to maintain the giant North Field's production capacity.

Multiple phases

The huge offshore compression hubs would be installed in multiple phases and the programme known as the North Field Production Sustainability (NFPS) Compression Project would be executed over the next few years, one person said.

“We are hearing that there would be seven to eight such compression hubs, for which EPC tenders would be carried out in a phased manner,” he added.

A second person said that EPC tenders for the first phase are likely to be issued by August, after Qatargas shortlists players, based on the Solicitation of Interests (SoI's) received during this stage.

“There are four packages which are a part of the first such compression hub,” he said.

The first package comprises two 32-inch fuel gas pipelines, while the second one includes one offshore compression platform along with a living quarter platform that comprises the first such compression hub.

A third one is for a wellhead platform and in-field pipelines, while the fourth package includes brownfield work, project watchers said.

The first compression platforms on order are likely to weigh between 25,000 tonnes to 35,000 tonnes each, according to contracting sources consulted by Upstream.

EPC players

EPC players which are thought to have received SoI’s for one or more packages for the first phase include McDermott International of the US, Italy’s Saipem, Malaysia’s Sapura Energy, Oslo-listed Subsea 7, Swiss-headquartered All Seas, UK-headquartered TechnipFMC and Korean offshore giants including Hyundai Heavy Industries and Samsung, a third person said.

Some other leading domestic and international contenders are also likely to be involved in the SoI stage, and more clarity is likely to emerge within a month or two, when the shortlist is drawn up, he added.

Another person said that the overall compression project is worth billions of dollars, but added that Qatargas does not require all platforms to enter into service at the same time.

“This will be a long-drawn process and will be carried out over the years, with one compression hub during each phase,” he said.

Upstream reported last year that UK-based TechnipFMC was in pole position for the prized front-end engineering and design contract from Qatargas for the offshore compression facilities job. Some project observers said this FEED work is already under way.

Pressing ahead with huge investments

Qatar has highlighted its intent to press ahead with billions of dollars' worth of investments in expanding and maintaining the production capacity of its North Field, despite the global glut and the coronavirus outbreak.

State-owned QP, through Qatargas, is carrying out the tender process for several major onshore and offshore EPC packages for the North Field Expansion and North Field Sustainability projects.

QP chief executive Saad Sherida al Kaabi said last year the company is not scaling back its plan to build the liquefied natural gas production trains meant for the North Field Expansion project.

Qatar has also initiated tender activities for expanding its liquefaction capacity to around 110 million tonnes per annum by 2025, coinciding with the first phase of its expansion programme at the North Field. Output is supposed to rise to 126 million tpa by 2027, during a second phase.

The award for key onshore packages meant for the first expansion phase of the North Field has been delayed at least until the first quarter of this year, with Qatar expected to soon arrive at a final investment decision.

Field Development

Qatargas fires up giant offshore tender race