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April 1, 2022

Tight contest for Qatar sulfur facilities contract

The fourth package of QatarEnergy’s North Field East LNG scheme involves EPC for storage and export units for the sulphur by-product.

By MEED   

QatarEnergy is in an advanced stage of bid evaluation for the fourth package of the North Field East (NFE) onshore liquefied natural gas (LNG) project, according to sources.

The scope of work on the NFE package four covers the engineering, procurement and construction (EPC) of storage and export units for the sulfur produced from the scheme’s LNG production processes.

The following firms submitted bids for the estimated $1bn package in late February:

  • Hyundai Engineering and Construction (South Korea)
  • Saipem (Italy)
  • Técnicas Reunidas (Spain)

Based on the initial evaluation of bids, Hyundai Engineering & Construction is understood to have emerged as the frontrunner for the contract, sources said.

QatarEnergy did not respond to MEED’s request for comment on the information.

North Field East scheme

Launched in 2017, the NFE megaproject constitutes the first phase of QatarEnergy’s $28.8bn North Field LNG expansion megaproject. It will raise Qatar’s LNG production capacity to 100 million tonnes a day (t/y) from 77.5 million t/y currently.

The EPC works on the NFE project have been divided into six packages – four onshore and two offshore.

QatarEnergy awarded a mammoth $13bn contract for NFE Package I to a consortium of Japanese company Chiyoda and France-based TechnipEnergies on 8 February last year. The package covers the EPC of four LNG trains, with each train planned to have an output capacity of about eight million t/y.

In March last year, QatarEnergy awarded South Korea’s Samsung C&T Corporation a $2bn contract for executing EPC works on the second NFE package. This will expand the LNG storage and loading facilities located within Ras Laffan Industrial City (RLIC).

In August, QatarEnergy awarded the third NFE package to Spanish contractor Tecnicas Reunidas. The scope of work on the package covers EPC works to expand the storage and loading facilities for condensates, propane and butane, and increase the import facilities for mono-ethylene glycol within RLIC.

ALSO READ: Qatar fires on all cylinders with gas strategy

As well as an LNG output of some 32 million t/y, Phase I will produce 4,000 tonnes a day (t/d) of ethane as feedstock for future petrochemical developments, 260,000 barrels a day (b/d) of condensates, 11,000 t/d of liquefied petroleum gas (LPG) and 20 t/d of helium.

Aiming to retain its position as the world’s largest LNG exporter, QatarEnergy announced the second phase of the North Field LNG expansion megaproject, to further raise LNG output to 126 million t/y by 2027, in November 2019. 

The second phase of the North Field LNG expansion megaproject, also referred to as the ‘North Field South’ (NFS) project, will see the addition of two more LNG compression trains.

QatarEnergy is steadily moving forward with the planning work for the estimated $10bn-plus NFS project and, in January last year, awarded McDermott the contract for front-end engineering and design (feed) works.

Separately, contractors are also preparing bids for the site preparation works package of the NFS onshore project.


This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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