The North Field Expansion – What it is and what opportunities there are for your business?

The North Field Expansion – What it is and what opportunities there are for your business?

- Connor Hayes

What is the North Field?

The North Field, located off the northeast coast of Qatar, is the largest non-associated natural gas field in the world, stretching out over an area of more than 6,000km².

It was discovered in 1971 and is currently operated by multiple companies in joint venture with Qatar Petroleum.

It has in excess of 900 trillion standard cubic feet (TSCF) of recoverable reserves, making Qatar the third largest holder of proven gas reserves in the world and the number one exporter of liquefied natural gas (LNG).

The extraction of this lucrative natural resource has been key in driving Qatar’s economic growth, and while the country is also a significant producer of oil, the government dedicates more resources to the development of natural gas.

What is the North Field Expansion?

The North Field expansion is a project announced by Qatar Petroleum in April 2017, intended to increase the production capacity of the North field from 77 million tonnes per annum (MTPA) of LNG to 100 MTPA.

This follows a 12-year period in which all-natural gas development projects at the North Field were halted amidst concern that the reserves were being developed too quickly and putting the field’s long-term production potential at risk. These fears have now been allayed and the decision has been made to monetise the remaining reserves.

The total cost of the project will be $28.7billion, making it the largest LNG project ever to be sanctioned and investment in the project is expected to exceed $50billion.

The main part of the project consists of the construction of four new LNG trains, with a capacity of 8MTPA each, as well as onshore liquefaction and storage facilities, a helium recovery unit and other associated buildings, warehouses and facilities.

The second phase of the expansion, which is not likely to be approved until 2023, is expected to further increase Qatar’s LNG production capability to 126 MTPA.

North Field Expansion – What opportunities are there for your business?

There are numerous business opportunities that a project of this magnitude will present. Both for companies that participate in the project itself but also for companies that can offer ongoing services to the industry throughout the life of the assets.

Firstly, there will be opportunities for businesses involved in the engineering, procurement and construction of products and services related to the on-shore and off-shore oil and gas industry.

There are also indications that the country will require more than 100 new ships to be built in the next decade to store and transport its growing LNG exports. This presents opportunities in numerous sectors including shipping, logistics, local transportation and hospitality.

As the project nears completion, the requirement for construction imports and machinery will inevitably drop off. However, the economic growth and trade surplus that this project will create is likely to continue stimulating business opportunities for many years to come.

In the financial sector, there will be an increasing need for asset managers to locate themselves in Qatar, close to future investors and as export earnings increase, opportunities will present themselves to financial institutions and advisors to offer additional services.

How can Venture Partner Qatar help?

Venture Partner Qatar has an extensive team with experience and knowledge in providing professional assistance and guidance for international companies, entrepreneurs, and investors on the best way to set up businesses, to deliver services and sell products in the local Qatar market.

Our dedicated operations teams and PROs have strong relationships with local government authorities to ensure that the correct information is provided, and requirements are met in an effective and timely manner.

If you need assistance in setting up a company in Qatar, and for further information on any other related company setup, local partner or PRO service matter in Qatar, do get in touch with us on +974 4478 8765, email us at info@vpqatar.com or complete the contact form below and we will be delighted to assist you.

Get in touch with Connor Hayes

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