Qatar Petroleum (QP) is aiming to take a final investment decision potentially by the end of this year on the second expansion phase of its giant North Field that is likely to further boost its liquefaction capacity to up to 126 million tonnes per annum.

The phase — known as North Field South (NFS) — would be the second part of a move from a current 77 million tpa in capacity after multibillion-dollar contracts were recently signed for the first phase, which will take capacity up to 110 million tpa.

QP chief executive Saad Sherida al Kaabi said at the CERAWeek by IHS Markit virtual conference on Tuesday that the company plans to announce “by end of this year or by first quarter of 2022, the implementation of the North Field South project, for two additional liquefaction trains".

Kaabi added that the "next phase is another nine months from now", also saying that the company is "very confident of the growth in the LNG market".

Qatar’s NFS project involves the second expansion phase of its massive North Field that envisages to ramp up its liquefaction capacity to 126 million tpa, with incremental production likely to start by 2027.

Ambitious expansion plans

The state-owned giant recently announced its final investment decision, valued at $28.75 billion, for the first phase of NFE — named as North Field East — that aims to ramp up output to 110 million tpa by middle of this decade, from the present nameplate capacity of 77 million tpa.

The second stage involves the construction of two additional mega LNG trains — with a capacity of 8 million tpa each — and associated offshore and onshore facilities.

The second expansion phase is expected to be worth upwards of $14 billion, project watchers have said.

QP is evaluating the further capacity expansion of its North Field beyond 126 million tpa, but is yet to define timelines for further increasing its output.

The state-owned giant recently signed long-term contracts with Bangladesh and Pakistan and is eyeing addition long-term deals that could guarantee an off-take for its ambitious expansion plans.

“We are working on many more long-term contracts. With less projects coming online (globally) and the demand growth in LNG, we believe the growth in gas market will make buyers look at security of supplies,” Kaabi added.

International partners

Kaabi said the company is hopeful of roping in international partners for the first phase of NFE this year.

“We will be announcing it another six months or so, on who all are the partners that have been selected,” he said.

The QP boss said the company has plans to bring in partners for up to 50% stake during the first phase.

“We delayed bringing in partners this time, just to have certainty on capital costs,” he added.

QP is speaking to international giants such as ExxonMobil, Chevron and ConocoPhillips, along with several other international players that could be involved in the bid process, Kaabi had earlier said.

LNG

Qatar sets sights on second expansion phase at giant North Field