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Qatar begins building new LNG trains

Helicopter on a helipad
Qatargas

Qatargas has begun building the four trains of the North Field East (NFE) project, to boost production to 110 million tonnes per year of LNG.

The country currently produces 77mn tpy.

Qatargas said the move would ensure “Qatar’s continued global leadership” in producing LNG.

First LNG from the new trains is expected to come in late 2025.

Qatar Energy, previously Qatar Petroleum (QP), ordered four LNG carriers from China’s Hudong-Zhonghua Shipbuilding Group Co., earlier in October.

The $760 million order was the first instalment of ships required for Qatari LNG export needs – and a major vote of confidence in China’s shipbuilding prowess.

Following the NFE project, the North Field South (NFS) development will boost production further, to 126mn tpy.

While demand for LNG has spiked, driving spot prices such as JKM to record levels, Qatar has said it cannot do anything in the short term to cash in. The country is producing as much as it can, officials have said.

The move comes as a number of gas exporters have called for importers to rethink their opposition to long-term deals. These contracts fell out of favour as LNG prices fell but now, with JKM recently hitting the $38 per mmBtu mark, the appeal of long-term Brent-linked contracts has become apparent.

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