Houston-based McDermott has won a major subsea contract worth up to $1.5 billion from LNG producer Qatargas, a unit of QatarEnergy.
McDermott said in a statement it will deliver engineering, procurement, construction, and installation (EPCI) for the North Field production sustainability (NFPS) offshore fuel gas pipeline and subsea cables project, COMP1.
Furthermore, the COMP1 project is part of the NFPS offshore compression project involving the installation of new assets in Qatar’s North Field.
This includes compression complexes at seven locations to sustain gas supply to the existing LNG production trains into the future, it said.
The US firm defines a major contract as between $750 million and $1.5 billion.
According to McDermott, the scope of the contract includes the installation of 190 kilometers of 32″ diameter subsea pipelines and also 17 kilometers of subsea composite cables.
It also includes installing 186 kilometers of fiber optic cables and 10 kilometers of onshore pipelines.
The McDermott Doha office will manage the project, while fabrication will take place at QFAB, the McDermott-Nakilat joint venture fabrication yard in Qatar, it said.
Giant LNG expansion
This contract award follows the North Field Expansion project (NFXP) contract awarded to McDermott in 2022.
Currently under execution, this project remains one of the largest contracts ever awarded to McDermott, the firm said.
State-owned QatarEnergy is significantly increasing LNG production from the North Field.
This first phase of the expansion project will increase Qatar’s LNG production capacity from 77 to 110 MTPA, while the second phase will further boost capacity to total 126 MTPA.
“As we continue to progress the NFXP offshore contract awarded to us last year, we are helping the State of Qatar expand LNG production from 77 to 126 MTPA via the new LNG trains under construction,” Mike Sutherland, McDermott senior VP, offshore Middle East, said in the statement.
Sutherland added that the firm is “delighted to deliver this key pipeline and cable infrastructure” and support the extension of the production plateau for the existing LNG trains.
