LNG

QatarEnergy, the leading global LNG producer and with three growth projects being developed has signed time-charter party (TCP) agreements with Qatar Gas Transport Co. (Nakilat) for the operation of 25 conventional-size LNG vessels as part of the second shipowner tender under Qatar’s LNG fleet expansion programme.

The agreements were signed in Doha by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President and Chief Executive of QatarEnergy and Abdullah Al-Sulaiti, the CEO of Nakilat.

A statement said that 17 of the 25 LNG vessels are being constructed at the Hyundai Heavy Industries (HHI) shipyard in South Korea, while the remaining eight are being constructed at Hanwha Ocean, formerly Daewoo Shipbuilding and Marine Engineering, also in South Korea.

“These agreements firm up last month’s selection of Nakilat as the owner and operator of up to 25 conventional-size LNG carriers, underscoring our continued confidence in Qatar’s flagship LNG shipping and maritime company,” said Al-Kaabi.

“This is a testament to Nakilat’s world-class capabilities as well as to the significant contributions of Qatari listed companies to our country’s national economy,” he explained.

“The agreements we signed today play an important role in implementing QatarEnergy’s historic LNG shipping programme, which will cater for our future requirements, as we move forward with the expansion of our LNG production capacity to 142 million tonnes per annum by 2030,” Al-Kaabi stated.

Each of the 25 vessels will have a capacity of 174,000 cubic metres and will be chartered out by Nakilat to affiliates of QatarEnergy pursuant to the 15-year TCP agreements.

Liquefaction surge

Qatar announced at the end of February 2024 that it was going ahead with a third huge expansion called the North Field West (NFW) project to take overall output to 142 MTPA by the end of the decade.

The NFW joint venture will add to production expansions already under way with the North Field East (NFE) and North Field South (NFS) LNG projects.

The current NFE ramp-up of QatarEnergy’s liquefaction capacity will take production from 77 MTPA to 110 MTPA by 2027.

The second phase, called the NFS venture, will further increase the LNG output capacity from 110 MTPA to 126 MTPA.

The new NFW project will be developed to take production to 142 MTPA.

Overall the three expansions will put into production a total of eight LNG mega-Trains, each with nameplate capacity of around 8 MTPA and total additional nameplate capacity of just over 64 MTPA.

French liquefied natural gas storage technology firm Gaztranzport and Technigaz (GTT) said it received an order from the Korea Shipbuilding & Offshore Engineering (SOE) group for the tank design for two LNG carriers and a Very Large Ethane Carrier.

QatarEnergy, the leading LNG exporter and developer of major new liquefaction projects, has celebrated the graduation of a new group of Qatari nationals who have successfully completed their academic studies and training programmes to join the workforces of QatarEnergy and other companies established in the expanding sector.

The US finished 2023 at the top of the liquefied natural gas exports league as shipments to Europe were ramped up to replace Russian volumes while Australia finished second because of maintenance, strikes and regulatory obstructions for future ventures and Qatar was in third place ahead of its massive expansion plans.

Air Products, the leading global supplier of LNG equipment and a growing global player in industrial gases and large-scale green fuel and power projects, reported an increase in fiscal fourth-quarter net income as annual net profits again soared over $2 billion.

QatarEnergy has signed a second partnership and supply agreement with China Petroleum and Chemicals Corp. (Sinopec) for Qatar’s North Field South (NFS) expansion project in the Arabian Gulf after Sinopec had previously taken a stake in the other Qatar expansion, the North Field East (NFE) joint venture.

Technip Energies, the leading liquefied natural gas engineering company, reported reduced first-half profits and revenues as the full withdrawal from the Arctic LNG II project in the Gydan Peninsula of Russia was completed amid the gain of a lucrative contract for the LNG expansion in Qatar and with a new record backlog of contracts.

Baker Hughes, the US energy technology company and LNG equipment supplier, has been awarded a major contract in the Côte d'Ivoire in West Africa where the Baleine project for offshore oil and associated gas is currently moving forward to maintain the country's status as an African energy hub.

Baker Hughes was chosen for the contract by Italian oil and gas company Eni and the African nation's state energy company, Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire (Petroci).

Eni and Petroci are initiating Africa’s first Scope 1 and 2 carbon-dioxide emissions reduction plan as part of the Baleine oil and gas field Phase 2 development.

The Baleine field, taking its name from the French word for “whale”, was discovered in 2021 as the largest commercial discovery in the country in the last 20 years and set to contribute substantially to boosting energy production in Côte d'Ivoire.

The Côte d'Ivoire’s mainly oil production has varied significantly over the past two decades as existing fields have become depleted, closed for maintenance or development works and as new discoveries have been made but have needed further investment.

Deep water trees

“This award, which includes eight deep water trees, three Aptara™ manifolds, the relevant subsea production control system, and flexible risers and jumpers, strengthens Baker Hughes’ presence in West Africa and unlocks considerable growth potential in the country,” explained the Houston, Texas-based company.

“Baker Hughes will deliver a configured-to-order product portfolio across subsea production and flexible pipe systems, designed for optimum cost effectiveness, installation and life-of-field value,” added the company.

Baker Hughes said that these deepwater trees and manifolds, supplemented with subsea production controls and flexible pipe systems, are aimed at providing efficiency and cost-effectiveness under demanding conditions.

“This collaboration between Baker Hughes and Eni is Africa’s first development project with clear Scope 1 and 2 carbon reduction goals and will deliver innovative technology that will enhance the energy security in Ivory Coast,” said Maria Claudia Borras, executive vice president for Oilfield Services & Equipment at Baker Hughes.

“Ensuring that energy is locally available is an increasingly profound challenge, and we applaud the efforts of Eni and companies like it to shape an abundant energy future for Africa. We are proud of the confidence placed in us to accelerate the execution of this important project,” Borras added.

LNG orders

Baker Hughes is additionally a key player in the LNG equipment supply sector and its most recent contract award was in April 2023 to supply two main refrigerant compressors (MRCs) for the North Field South (NFS) LNG expansion project in Qatar.

The Ivorian Baleine project is offshore block CI-101 and is forecast to hold up to 2.0 billion barrels of oil in place and 2.4 trillion cubic feet of associated gas located at water depth of 1,200 metres.

In addition to the CI-101 block, Eni owns stakes in four other blocks in the Ivorian deepwater.

They are CI-205, CI-501, CI-504 and CI-802, all with the same partner Petroci.

The Côte d'Ivoire’s regional neighbours to the north, Senegal and Mauritania, are currently developing floating LNG projects, while among its southern neighbours, Nigeria is an established world-scale LNG and oil exporting nation and Cameroon has a small FLNG project in operation.