Barzan gas development delayed by pipeline issues

07 February 2018
Phase one is expected to come online in 2019

Persistent problems with a pipeline have led to huge delays for the $10bn Barzan gas development.

Phase one is now expected to come online in 2019, according to industry sources, almost five years after the project was originally due to enter the commissioning stage.

The first gas flows were expected in mid-2015, with the start-up of the second train due to have started in the third quarter of that year. However, due to the pipeline issues, first gas flows are now expected in 2019.

The awarded engineering, procurement, and construction (EPC) contracts for phase one were worth a total of $2.5bn. The main contractor for the offshore package of the first phase was South Korea’s Hyundai Heavy Industries. Japan-based JGC was main contractor for the onshore package and Consolidated Contractors Company (CCC) was a subcontractor on both packages. Under the scope of the first phase, JGC installed two gas trains and Hyundai installed offshore platforms and subsea pipelines.

When it comes online, the first phase of the Barzan scheme is expected to have a capacity of 1.4 billion cf/d. The second and third phases, which are estimated to be worth $2.7bn and $3.3bn respectively, are in pre-execution phases and are both currently on hold. If the second and third phases move ahead and are executed, the project would have a total capacity of 5.9 billion cubic feet a day (cf/d) of natural gas.

The Barzan gas project is a key part of plans to increase the use of natural gas from the giant North Field to fuel the country’s power plants.

The project was launched in early 2011, when state-owned Qatar Petroleum (QP) signed a 93:7 joint-venture agreement with the US’ ExxonMobil.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.