Luxembourg headquartered Tenaris has won a prized pipeline supply contract from QatarEnergy for work on the state-owned giant’s huge North Field expansion project that is worth billions of dollars.

The European player confirmed the award on Wednesday and said it involves the “supply of a complete package of seamless line pipes and bends for the North Field East (NFE) Project.

The NFE development represents the first phase of Qatar’s giant liquified natural gas expansion scheme that aims to ramp up the tiny emirate’s LNG output to 110 million tonnes per annum, up from the current 77 million tpa capacity, by the middle of this decade.

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Tenaris said it will “manufacture and supply QatarEnergy with 197,000 tonnes of welded, high-end sour service pipe, 11,800 tonnes of seamless pipe and 206 bends.”

“The production of welded tubes will take place at Tenaris’s Confab mill in Brazil, while the seamless tubes will be manufactured at the Dalmine and Siderca mills, located in Italy and Argentina, respectively,” it added.

Andrea Previtali, the vice president of Tenaris line pipe services said the contract has been awarded “through a very stringent qualification process,” and well positions the company within QatarEnergy.

Qatar has dished out multiple contract awards this year for the first expansion phase of the giant NFE project that is valued at almost $29 billion.

In the second phase, named — North Field South (NFS), the operator aims to expand the field’s LNG production capacity to up to 126 million tpa by 2027.

While Qatar has arrived at the final investment decision for the project’s first expansion phase, Upstream understands FID for the second phase (NFS) is likely to be announced by the first half of 2022.