Qatar plans to float a tender for firms looking for a stake in its liquefied natural gas (LNG) expansion development, per Reuters. Companies with stakes in LNG terminals of the country and several other energy majors are expressing their interest in the expansion projects, the source added.
Qatar Petroleum, a state-run energy firm of the country, will be looking for firms that are willing to allocate capital for building the fourth LNG train. With this, the production capacity of the country’s LNG will likely be raised from the recent mark of 78 million tonnes per annum (MTPA) to 110 MTPA.
The competition for stakes in the expansion development is expected to intensify since Qatar is among the largest producers and exporters of LNG in the world. Notably, the country is considering expanding its LNG capacities by more than 33% over the next five years.
Reuters added that major energy players like Exxon Mobil Corporation (XOM - Free Report) , Royal Dutch Shell plc (RDS.A - Free Report) , TOTAL S.A. (TOT - Free Report) and ConocoPhillips (COP - Free Report) , with positions in the country’s LNG businesses, will likely be placing bids for the expansion projects. Companies without any stake, including Chevron Corporation (CVX - Free Report) , Equinor ASA (EQNR - Free Report) and Eni SpA (E - Free Report) , are reportedly expressing interest as well. Currently, Chevron and Equinor carry a Zacks Rank #5 (Strong Sell), while Eni has a Zacks Rank #4 (Sell).
Qatar Petroleum expects the expansion of LNG facilities to help it meet mounting demand for the environment-friendly fuel across the globe.
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