LNG

Worley, the Australian-based global energy engineers, have been awarded an engineering contract for a carbon-dioxide sequestration project by Qatargas, now known as QatarEnergy LNG.

National Petroleum Corporation of Namibia (Namcor) in southwest Africa said a third discovery had been made by partners Shell and QatarEnergy in the deep-water offshore Orange Basin as hopes were also raised for future revenues from associated gas like northern neighbour and LNG exporter Angola.

State-owned Namcor said the light oil discovery was the third made in the Basin after drilling the Jonker-1X exploration well.

The well is located in Block 2913A and 2914B (PEL 0039), 270 kilometres (168 miles) offshore southern Namibia.

Shell and QatarEnergy each hold a 45 percent stake in the PEL 0039 concession while Namcor has a 10 percent shareholding.

The well was drilled in Block 2913A and 2914B, following drilling operations which commenced in December 2022 and were completed safely early in March 2023.

The Jonker-1X discovery is the third well drilled in the past year in the licence area held by Shell.

Namcor said that the “Deepsea Bollsta” semi-submersible rig owned by offshore firm Odfjell drilled the well to a total depth of 6,168 metres in a water depth of 2,210 metres.

The acquired data is being evaluated and further appraisal drilling is planned to determine the size and recoverable resources potential of the discovery.

Potential

“The discovery has proven the exciting potential of the deep-water Orange Basin,” said Namcor Managing Director Immanuel Mulunga.

Saad Sherida Al-Kaabi, the Qatar Minister of Energy Affairs and the Chief Executive of QatarEnergy, said he was pleased with the encouraging discovery.

“I would like to take this opportunity to congratulate our partners Shell and Namcor, and to congratulate and thank the Government of the Republic of Namibia, which has been very supportive of this exploration effort,” said Al-Kaabi.

This announcement follows two similar announcements by QatarEnergy in February 2022 of oil discoveries in the Graff-1 well and in the Venus-1X prospect, both located in the Orange Basin.

In addition to the PEL-39 Exploration Licence, QatarEnergy also holds interests in PEL-56 (30 percent) and PEL-91 (28.33 percent) in offshore Namibia covering a total area of 28,327 square kilometres.

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 in the sector.

QatarEnergy said there were 89 graduates this year who will be taking up positions at the Arabian Gulf nation’s impressive list of 10 companies that have sprung from its developing of the oil and gas chain and its continuing pioneering of cleaner energy technology.

The companies are: QatarEnergy, Qatargas, North Oil Company, Oryx GTL, Qatar Petrochemical Company (QAPCO), Qatar Fertiliser Company (QAFCO), Qatar Fuel Additives Company (QAFAC), Qatar Aluminium (QATALUM), Qatar Chemical Company Ltd (Q-Chem), Qatar Fuel (Woqod) - as well as Shell Qatar.

In a speech to the graduates Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and Chief Executive of QatarEnergy, said the event made him proud and able to reflect on his own journey in the energy sector and the role ambition and hard work that play a role in reaching the highest ranks.

“I am pleased to congratulate you and your families on your graduation and on taking your first professional steps in the energy sector of the State of Qatar,” said Al-Kaabi.

“You have gone a long way to reach this stage in your lives, and now you stand before an important opportunity to work and earn a successful future in which you develop yourselves and put the interest of Qatar above everything,” he told the graduates.

Expansions

Al-Kaabi said Qatari energy industry graduates will be much needed as the nation embarks on projects such as the North Field East and North Field South expansion projects.

The initial expansions will raise Qatar’s LNG production capacity from 77 million tonnes per annum of LNG to 126 MTPA.

There will also be related projects to develop producing fields, petrochemicals, ammonia plants and other ventures.

“These are some of the projects that your companies are taking part in and in which many of you will find yourselves part of,” he explained.

“Therefore, you must have the ambition to reach your goals and to be the future leaders whom we can count on through your effort, sincerity, commitment and teamwork,” he added.

“Congratulations on your graduation, and I wish you all the very best,” declared Al-Kaabi.

At the end of the ceremony, the Minister and QatarEnergy chief handed certificates of appreciation to all graduates, along with symbolic gifts for outstanding graduates in their fields of specialization.

The ceremony was attended by many senior officials from QatarEnergy and energy sector companies.

QatarEnergy, one of the world’s largest LNG exporters, has decided to proceed with the $6 billion petrochemicals joint venture with US partner Chevron Phillips Chemicals near the LNG liquefaction plant at Ras Laffan.

An agreement marking the final investment decision for the project was signed in Doha by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and who is also President and Chief Executive of QatarEnergy and Bruce Chinn, President and CEO of Chevron Phillips Chemical.

The companies created a joint venture under the agreement signed on January 8 called Ras Laffan Petrochemicals.

The deal sees QatarEnergy holding a 70 percent share and Chevron Phillips Chemical 30 percent.

“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemicals sector and the first direct investment in 12 years,” explained Al-Kaabi.

“It will double our ethylene production capacity and increase our local polymer production from 2.6 to more than 4 million tons per annum and place the utmost emphasis on sustainable growth and the environment,” he added.

QatarEnergy said the Ras Laffan complex is expected to begin production in 2026, includes an ethane cracker with a capacity of 2.1 million tonnes per annum, making it the largest ethane cracker in the Middle East and one of the largest in the world.

Derivative units

The integrated complex will also include two high density polyethylene derivative units with a total production capacity of 1.7 million tonnes per annum.

Originally announced in 2019, the project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials.

“There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy,” said Al-Kaabi

“It will not only facilitate further expansion in the downstream and petrochemical sectors in Qatar, but will also reinforce our integrated position as a major global player in the upstream, LNG and downstream sectors,” he added.

As part of the joint venture Chevron Phillips Chemical will provide project management services.

The engineering, procurement and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering and CTCI Corporation.

Tecnimont will execute engineering, procurement and construction for the polyethylene units.

The polyethylene units will use Chevron Phillips Chemical’s MarTech loop slurry process to produce high-density polyethylene, which will primarily be exported from Qatar.

Polyethylene is used in the production of durable goods like pipes for natural gas and water delivery and recreational products such as kayaks and coolers. It is also used in packaging applications to protect and preserve food and keep medical supplies sterile.

“At Chevron Phillips Chemical, we continue to grow our global asset base where there is access to reliable, affordable feedstock. This investment will help meet global demand for polyethylene products,” said Chinn of Chevron Phillips.

QatarEnergy said that as part of its LNG expansion project it awarded the engineering, procurement, construction and installation (EPCI) contract for the offshore portion of its North Field feed-gas project to Houston, Texas-based firm McDermott Inc.

The expansion project will increase the state of Qatar’s LNG production capacity from 77 million tonnes per annum to 126 MTPA, through the North Field East (NFE) and North Field South (NFS) development ventures with first LNG expected in 2025.

QatarEnergy explained that the scope for the contract includes 13 normally unmanned wellhead platforms topsides (eight for NFE and five for NFS), in addition to various connecting pipelines and the shore approaches for the NFE pipelines, beach valve stations and buildings.

The Qataris added that the jackets and the pipelines for the NFS Project will be subject to a separate tender which is expected to be awarded in the first half of 2022.

“The award of this major EPCI contract is a momentous milestone that demonstrates QatarEnergy’s commitment to delivering our LNG expansion projects on time and to ensure the significant additional global LNG demand is catered for in a timely manner,” said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and the President and chief Executive of QatarEnergy.

“This contract also reinforces our excellent relationship with McDermott,” added Al-Kaabi.

“We are confident that the effective collaboration between QatarEnergy, Qatargas and McDermott will result in the safe and successful delivery of the project according to plan,” stated the CEO.

Al-Kaabi added that the QatarEnergy affiliate Qatargas, which has a proven history of delivering such major projects, has been entrusted with executing this mega project on behalf of QatarEnergy.​

“I would like to take this opportunity to express my thanks and appreciation to Sheikh Khalid bin Khalifa Al-Thani, the CEO of Qatargas, and to both the Qatargas and QatarEnergy teams for their significant efforts and contributions that resulted in the successful and timely execution of this contract,” Al-Kaabi declared.

The scope of the first phase of the expansion at the Ras Laffan production complex involves an additional four Trains, each with 8.0 MTPA of output.

Qatar has the southern portion of the North Field in Gulf waters and the other part is under the jurisdiction of neighbouring Iran.

Qatar Petroleum has signed a new supply agreement with Taiwan for 1.25 million tonnes per annum of LNG as the Taiwanese use more of the fuel and expand their infrastructure.

Qatar Petroleum has spoken up for the producer side at the LNG Producer-Consumer Conference in Tokyo while also encouraging importers and nations currently without LNG to take advantage of the fuel that is now a crucial part of the global environmental clean-up.

Qatar Petroleum has issued tender invitations for the engineering, procurement and construction of the four liquefied natural gas expansion mega-Trains planned for Ras Laffan as part of the project to liquefy and export an additional 31 million tonnes per annum of LNG.

Qatar Petroleum said it signed an agreement with US major ExxonMobil, its main partner in the Qatari Ras Laffan LNG production complex, to acquire a 10 percent participating interest in three exploration blocks offshore the southeast African nation of Mozambique, one of the newest LNG developers.