Qatar Petroleum took the final investment decision for developing the North Field East Project (NFE), which will raise Qatar’s LNG production capacity from 77 million tons per annum (MMTPA) to 110 MMTPA.
In addition to LNG, the project will produce condensate, LPG, ethane, sulfur and helium. It is expected to start production in the fourth quarter of 2025 and its total production will reach about 1.4 million barrels oil equivalent per day.
The decision to proceed with the investment was announced during a signing ceremony held to celebrate the execution of the project’s key onshore engineering, procurement and construction (EPC) contract.
The main scope of the EPC contract is the construction of 4 mega LNG trains with a capacity of 8 MMTPA each, with associated facilities for gas treatment, natural gas liquids recovery, as well as helium extraction and refining within Ras Laffan Industrial City.
Speaking at the signing ceremony, His Excellency Mr. Al-Kaabi thanked executives in attendance from Chiyoda and Technip, and said: “The execution of this EPC contract marks the commencement of the construction of the North Field East LNG Project, and is a significant landmark in Qatar Petroleum's strategic growth journey in a sustainable manner. The total cost of the NFE project will be 28.75 billion dollars. This project will generate substantial revenues for the state of Qatar and will have significant benefits to all sectors of the Qatari economy during the construction phase and beyond.”
Wood Mackenzie research director Giles Farrer said: “At 32 million tonnes per annum (mmtpa), this is the largest single LNG project sanctioned in history and at US$28.75 billion is likely to be the biggest project sanctioned across the global upstream business this year. 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."
Al-Kaabi added: "Today’s decision carries even more significance considering that it encompasses a number of concrete environmental investments in support of our strong commitment to achieve the highest environmental standards and to provide a credible solution in the low-carbon energy transition. One of the most important environmental elements of the NFE project is its CO2 capture and sequestration (CCS) system that will be integrated with our wider CCS scheme in Ras Laffan, which -once fully operational- will be the largest of its kind in terms of capacity in the LNG industry, and will be one of the largest ever developed anywhere in the world.”
The NFE project represents the first phase of LNG expansion in the State of Qatar, while the second phase, referred to as the North Field South Project (NFS), will further increase Qatar’s LNG production capacity from 110 MMTPA to 126 MMTPA. With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains (with a capacity of 8 MMTPA each) and associated offshore and onshore facilities.