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China Awards major contracts for Qatar’s LNG expansion project

venkat by venkat
April 3, 2019
in Asia Pacific, Marketing & Distribution, News, Pipelines & Transport
0
Qatar’s LNG expansion

Qatar Petroleum has awarded a number of contracts related to Qatar’s LNG expansion project designed to enhance its capabilities by increasing LNG production capacity from 77 to 110 million tons per year by 2024.

The contracts were announced by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President & CEO of Qatar Petroleum, in a speech at the 19th International Conference & Exhibition on Liquefied Natural Gas in Shanghai (LNG2019).

His Excellency announced awarding the fabrication and installation of the offshore jackets to McDermott; and the contract for early site works required to prepare the site of the four new 8 mtpa LNG mega-trains in Ras Laffan Industrial City to a joint venture between Consolidated Contractors Company (CCC) and Teyseer Trading and Contracting Company.

Minister Al-Kaabi also said “we are in the tendering phase for 8 rigs for the development drilling. The Front End Engineering and Design of the Onshore Facilities with Chiyoda will be completed in the next few days. The main Invitations to Tenders for the Engineering, Procurement and Construction of the Onshore Facilities will be issued before the end of this month.”

“In a few weeks, qualified ship yards will be invited to participate in a tender for the provision of LNG ship construction slots for the LNG shipping fleet required for the LNG expansion project,” he added.

Minister Al-Kaabi said “the State of Qatar is partnering with many countries around the world to ensure the security of their energy supplies and the sustainability of their economic growth.”

“As the largest LNG producer we are also expanding our capacity in many parts of the world. This includes adding 16 MTA from our Golden Pass LNG export project in the United States with our long-term strategic partner ExxonMobil. This project is under construction and should be in operation by 2024. It is worth noting that Qatar Petroleum and ExxonMobil have established Ocean LNG, which is an international joint venture marketing company that will be responsible for marketing all Golden pass LNG production.”

His Excellency Mr. Al-Kaabi was speaking at the conference’s opening session on the global LNG outlook, alongside ExxonMobil Corporation Chairman & CEO Mr. Darren Woods, and Chevron Corporation Chairman & CEO Mr. Mike Wirth.

Minister Al-Kaabi stressed the fact that natural gas has the economic and environmental qualities to make it the energy source of the future, which is a key factor in Qatar Petroleum’s pushing ahead with its massive LNG expansion project.

“The impact of energy on humankind over the past century is unmeasurable. It has powered homes and industrial plants, and accelerated production and innovation. In today’s very complex world, we need stable, reliable, clean and affordable sources of energy to keep that momentum. We also need a clean source of reliable energy. Natural gas is that source,” he said.

His Excellency Mr. Al-Kaabi highlighted that demand for gas will continue to rise amid raising environmental and climate change concerns and widespread global moves towards cleaner and more cost effective fuels. He added: “while some see natural gas as a transition fuel, we believe it is a destination fuel. It is the cleanest of all fossil fuels. It is reliable, affordable, and the fuel of the future.”

In addressing the global LNG outlook, H.E. Mr. Al-Kaabi provided an overview of regional demand patterns, and said “China, along with India, will continue to lead Asia as the main drivers behind the growth of global LNG demand.”

Pointing out Qatar’s role in meeting China’s demand for energy, His Excellency Minister Al-Kaabi said: “this year, we are celebrating the tenth anniversary since our first LNG cargo to China. We are proud to have delivered over 50 million tons of LNG to China, equalling more than 22% of China’s LNG imports, during that decade.”

His Excellency Mr. Saad Sherida Al-Kaabi met on the sidelines of LNG19 with a number of industry leaders to discuss bilateral cooperation and mutual relations. Mr. Al-Kaabi met with the Director of China’s National Energy Administration, His Excellency Mr. Zhang Jianhua, the Chairman & CEO of ExxonMobil Corporation Mr. Darren Woods, the Chairman of CNOOC Mr. Yang Hua, the Chairman of Shenergy Mr. Huang Dinan, and the CEO Uniper Global Commodities SE Mr. Keith Martin.

Qatar Petroleum is a regular and active participant in this important LNG event. In addition to being a principal sponsor, Qatar Petroleum is also taking part in the LNG exhibition along with Qatargas, Ocean LNG, and Nakilat.

LNG2019 is organized by the International Gas Union, the Gas Technology Institute, and the International Institute of Refrigeration. The event is held every three years alternating between exporting and importing countries.

This year’s event in Shanghai is held with the participation of more than 240 speakers and 11,000 attendees, and 250 exhibitors from 80 countries.

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