Expansion plans • Chapter summary
Qatar’s lifting of a self-imposed moratorium on the development of the North Field has gained speed with the so-called North Field Expansion (NFE) and contract awards announced at the beginning of 2021.
Qatar Petroleum (QP) took the final investment decision to deploy a USD28.75 billion plan to expand the current capacity of the North Field and raise Qatar’s LNG output from million tons per year to 110mtpy by 2025, and even take this production capacity further to 126mtpy as expressed by Saad Sherida al-Kaabi, Minister of Energy Affairs and President & CEO of Qatar Petroleum. This project also entails the production of condensate, LPG, ethane, sulphur, and helium, in line with the country’s objective to develop its petrochemicals industry.
The NFE is one of the biggest projects announced in the oil and gas sector in recent years, and has fueled optimism in Qatar, with more international players turning their eyes to the Gulf country. The first phase of the NFE megaproject was awarded to a consortium of Chiyoda Corporation and Technip Energies, worth USD13 billion.
However, questions still remain over international markets’ capacity to absorb this upcoming wave of increased LNG output and price volatility. In order to reduce these risks, special attention is being given to new technologies that allow for more efficient operations. “OPR, Microscope, and Geosphere are three key technologies that were rolled out extensively in 2020, and they will gain more momentum in 2021 as the expansion project continues to grow,” commented Amit Singh, Managing Director of Schlumberger Qatar.
Another important topic is Qatar’s local content program, Tawteen, launched by QP, which, according to Saad Al Kaabi, has two parts. “The first is creating 100 new investment opportunities within the energy sector. The second part is an in-country value policy that rewards suppliers and contractors who execute their contracts and agreements by maximizing local content,” he said.
Additionally, Qatar is seeking to develop its non-oil industry as part of Qatar National Vision 2030 and the diversification strategy it embodies. The national industrial projects continue to focus on achieving Qatar’s economic independence and security, as well as apply the latest technologies to drive efficiency and profitability. The growth of Qatar’s manufacturing sector has been of paramount importance to combat the toughest consequences of the blockade. Now that it has been lifted, it is still to be seen if Qatar maintains the steady path it began on toward enhancing its national industrial landscape.