QP to spend $200 million on emissions reduction technology for LNG expansion project

Qatar Petroleum will spend $200 million on emissions reduction technology for its North Field LNG expansion project, according to the company's bond prospectus, seen by S&P Global Platts June 30.

The prospectus lists "greenhouse gas reduction measures including the installation of a CO2 capture and sequestration system, power import from solar power plants, maximization of waste heat recovery, improved machines efficiency utilizing latest available technology, and the use of ultra low NOx burners."

"These design improvements are expected to achieve an estimated 30% reduction in GHG emissions, compared to similar existing LNG facilities," it said.

The first phase of the the two-phase North Field expansion project will cost $28.75 billion -- making it one of the largest energy projects globally -- and boost Qatar's LNG production to 110 million mt/year from 77 million mt/year.

First gas is expected in early 2025, with four new 8 million mt/year LNG trains coming online at three-to-six-month intervals. Under this timeline, the project's first phase will be fully commissioned by the end of 2026.

Capacity will rise to 126 million mt/year by 2027 under the second phase.

QP said it is focused on creating low-carbon energy by growing its renewable energy capacity, with an ambition to have a solar power plant portfolio of 4 GW by 2030.

It aims to reduce the overall net carbon intensity of its LNG facilities by 25%, and that of its upstream facilities by 15% by 2030. The company is also sponsoring engineering studies to convert Qatar's QFlex and QMax LNG vessels from using 0.5% sulfur fuel oil to instead use zero-sulfur LNG, the bond prospectus said.

QP operates the largest CO2 recovery and sequestration facility in the Middle East with a capacity of 2.2 million mt/year.