The South Pars/North Dome Field LNG project, sometimes referred to as the North Field Expansion project, is an investment initiative undertaken by the Qatari to expand its liquefied natural gas production capacity from the so-called South Pars/North Dome Field. It is an important part of strategy to maintain its position as the world’s largest LNG investment projects in Qatari, and to meet the growing global demand for gas.
The project involves the long-term financing and construction of additional LNG production facilities, including the construction of new liquefaction trains with the help of international partners. This expansion is being led by Qatar Petroleum is the state-owned corporation responsible for the exploration, production, and export of Qatar’s oil and gas resources.
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South Pars/North Dome Field: global largest LNG investment projects
North Field, also known as the North Dome, is a massive offshore natural gas field located in the Persian Gulf, off the northeastern coast of Qatar. It is one of the world’s largest gas fields and holds significant reserves of natural gas, making Qatar one of the leading global LNG exporters.
The North Field was discovered in 1971 by the Qatar General Petroleum Corporation (now known as Qatar Petroleum). It spans an area of approximately 6,000 square kilometers and is shared between Qatar and Iran (where it is known as South Pars). This huge field contains estimated recoverable gas reserves of about 900 trillion cubic feet, or 25 trillion cubic meters.
Qatar has established a powerful and very expensive LNG infrastructure to export the gas from the North Field. The country has several LNG liquefaction plants, including Ras Laffan Industrial City, which is considered a major industrial hub. Largely thanks to the North Field, Qatar is currently the largest LNG exporter in the world, accounting for a significant portion of global LNG supplies.
Gas field expansion: needs
Qatar has been implementing various expansion projects to increase its LNG production capacity from the North Field. In September 2021, Qatar Petroleum announced the North Field Expansion project, which aims to increase the country’s LNG production capacity by 43% by 2027. This project involves new LNG production facilities, including additional liquefaction trains. The expansion aims to significantly increase LNG production capacity by 2027.
It is clear that the efficient use of the North Field will require huge investments in the coming years, but the potential economic benefits of this project cannot be overestimated. The current construction has attracted huge LNG investments, requiring the most advanced natural gas production, liquefaction and transportation technologies provided by various countries.
North Field East LNG investment Projects: Key details
Qatargas expects a significant increase in LNG production capacity in Qatar from the current 77 MTPA to approximately 110 MTPA, to be achieved as early as 2025. Moreover, the next phase of the expansion of the North Field, according to the plans of investors, will increase the overall production capacity to 126 million tons per anuum by 2027.
The NFE project was initially planned to add new production capacity to the existing infrastructure in Ras Laffan Industrial City, Qatar’s major LNG hub. The expansion plans involve the construction of four mega-trains, each capable of producing approximately 8 million tons per annum of LNG. This will result in an overall increase of about 32 MTPA of LNG production capacity.
Project costs of North Dome Field LNG project
Among the largest partners in this project are the British Shell, the French company TotalEnergies, the Italian company Eni, as well as ConocoPhillips and ExxonMobil.
Given the scale and complexity of LNG facilities, the costs can vary based on multiple factors, including construction expenses, engineering and design costs, procurement of equipment and materials, labor expenses, infrastructure development, and environmental and safety considerations.
This is an extremely expensive project, estimated at about $29 billion.
Technological advancements of North Dome Field LNG project
The NFE investment projects incorporates advanced LNG technologies to enhance efficiency and reduce environmental impacts. It includes the introduction of the latest generation LNG liquefaction technology, known as Air Products AP-X Process, which is expected to improve energy efficiency and reduce greenhouse gas emissions.
Air Products has played a vital role in Qatar’s liquefied natural gas industry by supplying crucial equipment and technology for various LNG trains operating in Ras Laffan. AP-C3MR LNG Process technology was employed in the initial LNG trains in Qatar, which commenced production in 1996. This technology was very important in the early stages of local LNG industry development.
Economic impact of investment in LNG projects
The gas field expansion also attracts foreign direct investment in Qatar’s LNG sector. International companies invest in infrastructure development and technology transfer, fostering collaboration and driving further economic growth. Increased FDI can also bring in engineering expertise, technologies, and best practices that contribute to further sector development.
The construction and operation of the NFE LNG project will generate employment opportunities across multiple sectors. The project will require skilled labor, engineers, technicians, and support staff, leading to job creation in both the short and long term LNG investment projects in Qatari.
The development and production of natural gas from the North Field have raised environmental concerns.
While natural gas is generally considered a cleaner fossil fuel compared to coal and oil, the extraction and processing of natural gas can still have several environmental impacts, such as greenhouse gas emissions to the atmosphere, degradation of the marine ecosystem, some irreversible changes in land use and loss of biodiversity in the Gulf region.