A joint venture consisting of Spain’s Tecnicas Reunidas and China’s Wison Engineering has secured a major contract from QatarEnergy related to the giant LNG expansion project in Qatar.
QatarEnergy said in a statement on Thursday the award of this engineering, procurement, and construction (EPC) contract marks the final major milestone to deliver its North Field East (NFE) LNG expansion project to boost Qatar’s LNG production capacity to 110 mtpa.
Prior to this contract, QatarEnergy and its unit Qatargas awarded several deals related to the LNG expansion project.
The TR-Wison JV won a lump-sum contract for the expansion of the sulfur handling, storage, and loading facilities within Ras Laffan Industrial City.
Also, these facilities will support the NFE’s four new 8 mtpa mega LNG trains, which QatarEnergy expects to launch by year-end 2025.
The contract will also include an option for further expansion to support sulfur production for the two additional LNG trains of the North Field South (NFS) project, and infrastructure to support future additional LNG trains.
QatarEnergy did not provide the price tag of the deal.
Another EPC contract by the end of this year
In delivering the contract, the TR-Wison JV would manage the detailed engineering work from Qatar, leveraging the country’s growing technical capabilities for the development of major projects, QatarEnergy said.
Sulfur produced as a by-product of the gas treatment process required prior to the production of LNG is used in the production of fertilizers and as a base material for intermediary chemicals used in the manufacturing of industrial and household products, the firm said.
With the execution of this EPC contract, there is only one remaining major EPC contract for the delivery of the North Field expansion project, comprising the NFE and NFS projects.
This EPC contract includes the NFS two onshore processing and liquefaction trains.
QatarEnergy said it plans to award this EPC contract by the end of 2022.
When completed, the NFE and NFS projects will increase Qatar’s LNG production capacity from 77 mtpa today to 126 mtpa by 2027.
The company’s unit Qatargas already operates in total fourteen LNG trains at Ras Laffan.
Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said, “the award of this EPC contract is the culmination of our efforts to implement the NFE project, the largest of its kind in the history of LNG industry.”