Samsung C&T scores LNG expansion contract from Qatar Petroleum

Qatar Petroleum said Monday it awarded a major engineering, procurement, and construction contract to South Korea’s Samsung C&T Corporation as part of its giant LNG expansion.

Under the deal, Samsung C&T will work on the LNG storage and loading facilities located within Ras Laffan, QP said.

The deal comes about three weeks after QP’s final investment decision for its North Field East expansion project.

The state-run giant said it awarded the contract, valued at more than $2 billion dollars, including options, on a lump sum basis.

It is the second major onshore EPC contract award for the NFE project, following the Technip and Chiyoda deal. 

The project will add four “mega trains” with a capacity of 8 million tonnes per year and other facilities in the Ras Laffan complex.

This first phase of the expansion project will increase Qatar’s LNG production capacity from 77 to 110 mtpa. QP also plans a second phase to further boost capacity to total 126 mtpa by 2027.

QP’s unit Qatargas already operates six LNG trains at Ras Laffan.

Three LNG tanks and three berths

Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said the contract provides for the expansion of existing infrastructure required to ensure the “safe loading and on-time delivery of our LNG cargoes to our international customers across the globe.”

In addition, he said the scope includes three LNG tanks and three LNG loading berths for NFE, and options for two LNG tanks and one LNG berth for NFS project, and all associated pipes, lines and loading lines.

The detailed engineering activities under the contract will take place in Qatar, “thus leveraging the growing technical capabilities for the development of major projects in the country,” Al-Kaabi said.

Moreover, the contract includes the expansion of systems that target the elimination of flaring during the loading of LNG ships as well as recovery of ‘jetty boil-off gas’ which will help reduce greenhouse gas emissions, QP said.

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