Expanding North Field Brings Qatar's Energy Sector Into New Historical Phase

(MENAFN- The Peninsula) QNA

The features of the North Field Gas Expansion project began to materialize on the ground after Amir H H Sheikh Tamim bin Hamad Al Thani laid its foundation stone yesterday so that the energy sector in the country entered another phase of its long history and culminated in a stage that began with announcing an increase in the volume of gas production of the State of Qatar from 77 million tons annually to 110 million tons in 2026 as a first stage, and to 126 million tons in 2027. In September 2018, QatarEnergy announced an increase in its production of liquefied natural gas (LNG) from 77 million tons to 110 million tons annually by establishing a fourth production line in addition to the three production lines announced in July 2017, so that the new lines will enter a production phase in 2026.

The capacity of one LNG production line is estimated at 8 million tons per year, making the total capacity of the production lines that will be established is estimated at 32 million tons. A first phase, followed by a second phase revealed in 2019 to increase production from 110 million tons to 126 million tons, which will enter production in 2027 through two new production lines with a capacity of 16 million tons, bringing the new production capacity to around 48 million tons per year.

The expansion project of the world's largest LNG project in Qatar is divided into two main parts, eastern and southern, with both parts of the project being built and production starting at its full new capacity by 2027.

The North Field LNG is the world's largest gas field, containing 50.97 trillion cubic meters of gas. The area of the field is around 9,700 square kilometers, of which 6,000 are in Qatar's territorial waters. The field was discovered in 1971, and production began in 1989.

According to the aforementioned figures, the State of Qatar intends to increase its production capacity of LNG by more than 63 percent to reach 126 million tons annually in the second half of the current decade by developing the North Field East, which is scheduled to enter production in 2026, and the North Field South, which will be ready to deliver its first shipment in 2027.

TotalEnergies, ExxonMobil, ConocoPhillips, Eni, Shell, and Sinopec had previously won contracts to develop the North Field East in partnership with QatarEnergy, with total investments that reached around USD 28.75 billion. TotalEnergies, Shell, and ConocoPhillips won contracts to develop the North Field South in partnership with QatarEnergy.

The International Energy Agency (IEA) confirms that the field contains an estimated 51 trillion cubic meters of natural gas and around 50 billion barrels (7.9 billion cubic meters) of natural gas condensate. According to a statement by Minister of State for Energy Affairs H E Eng. Saad bin Sherida Al Kaabi, Qatar's increase in the volume of its production of LNG is a significant achievement towards ensuring more future supplies of LNG to meet the increasing global demand as people need energy. Therefore, gas must be viewed as the targeted fuel, not just as a transitional fuel.

His Excellency also stressed the need for serious action by some consuming countries to establish LNG receiving stations, highlighting the need to make additional efforts to develop infrastructure within consuming countries to improve access to this environmentally cleaner fuel. Minister of State for Energy Affairs said that the LNG industry is costly, requires the ability to make investment decisions, and requires long-term financial commitment by consuming countries to secure long-term contracts and supplies.

The North Field Expansion project is one of the largest investments in the energy industry during the past few years, as well as being the largest and most competitive LNG project ever. The project also contributes to strengthening Qatar's national economy with huge financial returns over decades. Construction work and other activities related to project implementation will also have a significant impact on stimulating economic activity in various local sectors.

The project contains several environmental components that support the State of Qatar's strong commitment to achieving the highest environmental standards and providing reliable solutions in transforming to low-carbon energy.

The carbon capture and injection system is seen as one of the most environmental elements of the project as it forms part of the integrated constructions to capture CO2 and inject it in Ras Laffan, which will become - when fully operational - the largest of its kind in the LNG industry, and one of the largest facilities of its kind that has ever been developed anywhere in the world. In addition to the facilities for capturing and injecting CO2, the project will include several positive and unique environmental advantages, including providing a large portion of the project's electricity needs from the national electricity network in Qatar, as QatarEnergy seeks to secure these needs from the power station project Al Kharsaah Solar Energy, which has a capacity of 800 megawatts, in addition to about 800 other megawatts from the solar energy station, which QatarEnergy will soon establish as part of its portfolio plan of solar energy projects, which aims to reach more than 4,000 megawatts before 2030. The project includes a system to recover evaporated gas during shipping, reducing greenhouse gas emissions by approximately one million tons of carbon dioxide equivalent annually.

The project will save 10.7 million cubic meters of water annually by recycling and reusing 75 percent of industrial wastewater. Nitrogen Oxides (NOx) emissions will be reduced by 40 percent through the application of improved Dry Low NOx technology.


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