Qatar's QP signs deal for mega LNG expansion

Qatar Petroleum (QP) signed a contract for a first phase of expanding its North Field LNG project, which will boost the country's LNG output to 110 million tons per year by 2026.

The contract - which covers major onshore engineering, procurement and construction - was signed with a joint venture between Chiyoda and Technip and is known as North Field East.

Production from that phase will start by the fourth quarter of 2025 and reach full capacity by late 2026 or early 2027, QP's CEO Saad al-Kaabi said in a virtual news conference.

"The total cost of the project will be $28.7 billion, makingit one of the industry's largest investments in the past few years and largest LNG capacity ever built," Kaabi said.

Kaabi, who is also Qatar's energy minister, said that though QP is ready to develop the North Field alone, the bidding process for international oil firms to take up to a 30% stake in the project's first phase will start next week.

He said he expects a decision to finalize partnerships with the IOCs for the field's expansion by the end of this year.

ExxonMobil, Royal Dutch Shell, Total and ConocoPhillips are long-standing partners in Qatar's LNG plants.

The second phase, known as the North Field South project,will lift Qatar's LNG production capacity to 126 MMtpy by 2027 from today's 77 MMpty.

Kaabi said that QP is currently evaluating further increasein LNG capacity beyond the 126 MMtpy

"I would say stay tuned," he added.

(Reporting by Rania El Gamal; editing by David Evans and EdOsmond)

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