Wood Mackenzie research director Giles Farrer said: “At 32 MM metric tons per annum [35 MM tons], this is the largest single LNG project sanctioned in history and at $28.75 billion is likely to be the biggest project sanctioned across the global upstream business this year.
“At a long-term breakeven price of just over $4 per million British thermal units, it’s right at the bottom of the global LNG cost curve, alongside Arctic Russian projects.”
According to Farrer, QP will have more than 75 MMt/yr of uncontracted LNG volumes to sell by 2027, equivalent to 70% of its LNG portfolio.
QP has awarded CTJV, the joint venture between TechnipFMC and Chiyoda, an EPCC contract for the North Field East onshore facilities, comprising two additional LNG trains, each with a capacity of 8 MMt/yr, and a CO2 carbon capture and sequestration facility.
The goal is to achieve a reduction of more than 25% in greenhouse gas emissions compared to similar LNG facilities.
Qatar’s decision to construct a carbon capture and storage facility shows that LNG suppliers are increasingly seeking ways of mitigating their carbon emissions, Farrer said.
“This focus on low-cost supply and carbon emissions is proving attractive to buyers.”
The onshore complex will receive around 6 bcf/d of gas from new offshore facilities and wells on the North Field’s eastern sector, and will increase Qatar’s total production from 77 to 110 MMMt/yr.