Report: Qatar Petroleum raises $12.5 billion in bond sale

State-owned Qatar Petroleum has reportedly sold $12.5 billion in a jumbo four-tranche bond deal which would help fund its giant LNG expansion project.

QP tightened the spreads across all four tranches by 30 basis points (bps) after combined orders topped $41 billion, according to a report by Reuters on Wednesday.

The LNG behemoth sold $1.5 billion in a five-year portion at 50 bps over U.S. Treasuries (UST), $3.5 billion in 10-year paper at 90 bps over UST, $3.5 billion in 20-year notes at 3.15% and $4 billion in 30-year Formosa bonds at 3.3%, Reuters said in the report.

Moreover, the Formosa bonds – sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar – and the 10-year paper attracted the most demand, over $12 billion each, the agency said.

QP confirmed this bond offering in a statement on Thursday.

Boosting LNG capacity

The move comes months after QP announced a final investment decision on its $28.75 billion North Field East project.

Moreover, capital expenditure by QP, its subsidiaries and joint ventures through 2025 is projected at 300 billion riyals ($80 billion), Reuters said in the report.

Under the North Field East project, QP will build four mega trains with a capacity of 8 million tonnes per year 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 as well as additional expansions.

The company’s unit Qatargas already operates in total fourteen LNG trains at Ras Laffan.

In addition, QP’s CEO Saad Sherida Al-Kaabi recently said that Shell, TotalEnergies, and ExxonMobil were bidding to take a stake in the company’s giant LNG expansion project.

He said QP had received offers for double the equity available to potential partners in the bidding process for the North Field East project.

QP also on Wednesday announced it had entered into a ten-year deal to supply LNG to Shell in China. This marked the fourth long-term deal the firm revealed since February this year.

Most Popular

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

More News Like This

Golden Pass gets OK to place MP 33 compressor station in service

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, has secured approval from the US FERC to place into service its MP 33 compressor station, as it continues to move forward with commissioning activities at its three-train LNG plant in Texas.

NYK, partners take delivery of QatarEnergy LNG carrier

Japan’s NYK and its partners K Line, Malaysia’s MISC, and China’s CLNG have taken delivery of a 174,000-cbm LNG carrier built under the massive QatarEnergy shipbuilding program.

Another QatarEnergy LNG carrier named in China

Chinese shipbuilder Hudong-Zhonghua hosted a naming ceremony for another LNG carrier built under the massive QatarEnergy shipbuilding program.

QatarEnergy LNG tanker wraps up trials in China

A 174,000-cbm LNG carrier built as part of the massive QatarEnergy shipbuilding program has completed its trials in China, according to Hudong-Zhonghua.