The world’s largest oilfield services…
The Iraqi Supreme Court delivered…
Six large Western energy companies are bidding for a stake in Qatar’s North Field expansion project aimed at boosting the country’s LNG export capacity.
Four of the six are already partners of Qatar in the development of its massive natural gas reserves: Exxon, Shell, TotalEnergies—formerly just Total—and ConocoPhillips. Now, Italy’s Eni and Chevron have also joined the bidding, Reuters reported, citing unnamed industry sources.
According to one of the sources, Qatar Petroleum, the state-owned oil and gas company, does not need partners in terms of expertise. What it needs are long-term commitments of LNG purchases.
“I don’t think QP need the IOCs expertise in the upstream or midstream construction of the project but they will be glad to see someone take some LNG volumes off their hands,” the source, who is with one of the bidders, told Reuters.
Qatar Petroleum sanctioned the North Field East Project this February. The expansion is set to raise Qatar’s LNG production capacity from 77 million tons per annum to 110 mmtpa. The project, expected to start production in the fourth quarter of 2025, will cost US$28.75 billion, which would make it one of the industry’s largest investments in recent years. It would also cement Qatar’s place as the world’s number-one LNG exporter while LNG projects elsewhere are being delayed or shelved because of the supply and demand dynamics of the natural gas market.
Qatar also plans another expansion phase at the North Field, the world’s largest natural gas field which it shares with Iran. The second expansion phase will be the North Field South Project, set to further increase Qatar’s LNG production capacity from 110 mmtpa to 126 mmtpa, with an expected production start date in 2027.
“At a long-term breakeven price of just over $4 per million British thermal units, it’s right at the bottom of the global LNG cost curve, alongside Arctic Russian projects,” Wood Mackenzie research director Giles Farrer said in February, commenting on Qatar’s LNG expansion project.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Charles is a writer for Oilprice.com