Global LNG Projects Creating Job Opportunities In 2022

Liquified Natural Gas (LNG) is seen by many Oil and Gas companies as a solution to reduce their carbon emissions, bringing them closer to international net-zero targets.

With the growing emphasis on mitigating our impact on the climate, LNG projects have gained increased importance, creating plenty of engineering opportunities for career development and growth. Here are just a few exciting LNG projects creating jobs in 2022.

Tanzania LNG Project, Tanzania

The Tanzanian government, through the Tanzania Petroleum Development Corporation, started negotiations in November 2021 alongside Shell and Equinor on the Host Government Agreement (HGA) needed to further this $30 billion LNG project. The HGA negotiations had been initially halted in 2017, before restarting in 2018 but stopping again due to technicalities on the scope of work.

Tanzania presents huge opportunities for foreign investors, as it has an estimated 57.7 trillion cubic feet of natural gas reserves. The sale of the LNG from the project is also set to bolster the country’s economy.

The two-train onshore liquefaction plant will be in the town of Lindi on the Indian Ocean coast and will have an annual capacity of 10 million tons. The gas will come from three deep-water blocks: Blocks 1,2, and 4.

Equinor and ExxonMobil are partnering for Block 2, which holds approximately 20 trillion cubic feet of gas. Equinor started its exploration drilling activities of Block 2 back in 2011. In total, 15 wells were drilled, which led to 9 discoveries.

Shell is partnering with Jakarta-based MedcoEnergi and Singapore’s Pavilion Energy for blocks 1 and 4, which hold about the same volume as Block 2.

Construction is expected to start in 2023 and completion is planned for 2028. The Tanzania LNG Project is also expected to create over 7,000 jobs across all disciplines. This will include Chemical, Mechanical and Electrical Engineers, Project Managers, Technicians, Financial, Legal, and more.

Rio Grande LNG, USA

The Rio Grande LNG project is one of the largest private investments in Texas, USA. The project, which is expected to cost about $15 billion, is being developed by NextDecade, an LNG development company based in Texas. Under its subsidiary Rio Grande LNG, the company plans on developing and operating a 27mtpa gas liquefaction and export facility at the Port of Brownsville.

Rio Bravo Pipeline, which is another subsidiary of NextDecade, will build and operate the feed gas pipeline, although a purchase agreement for Rio Bravo Pipeline was signed by Enbridge in February 2020. The plant will include 6 liquefaction trains with a minimum capacity of 4.5 mtpa each.

The FEED contract for the project was awarded to McDermott (then CB&I) in May 2015 and the US Federal Energy Regulatory Commission (FERC) granted the final environmental approval for the project in April 2019. Approval for the construction and operation of the terminal and pipeline was given in November 2019.

In January 2022, NextDecade decided to delay their Final Investment Decision to the second half of 2022, although they did not give a reason. Commercial operations are predicted to start in 2023.

This project presents many opportunities for the region. As stated by Brent Wahl, Chief Financial Officer for Next Decade,

“NextDecade is constantly demonstrating its commitment to Cameron County and communities throughout the Rio Grande Valley. We are eager to make the Valley a center for clean energy and emissions reduction, demonstrating the positive impacts of high-skilled job creation and the international competitiveness of clean U.S. energy supply.”

North Field LNG Expansion Project, Qatar

Located off the northeast coast of the Qatar peninsula, North Field is the biggest single non-associated natural gas field in the world and the largest ever LNG project globally.

The expansion of North Field was announced in April 2017. This came after Qatar Petroleum (now QatarEnegy) announced it would revoke its self-imposed 12-ban on field development. Qatargas, a subsidiary of Qatar Petroleum, is currently operating the field. The Final Investment Decision (FID) for North Field East, the first phase of the project, was reached in February 2021. The development for the project is worth $28.75 billion.

The first phase of the expansion is set to increase the LNG production in Qatar from 77mtpa to 110mtpa, equivalent to a 43% increase in capacity. As part of this, four new LNG trains and eight wellhead platforms will be developed, whilst 80 new wells will be drilled.

In total, the North Field expansion is set to grow the country’s LNG production capacity to 126 mtpa by 2027 – a 64% increase – through the North Field East (NFE) and North Field South (NFS) expansion projects.

The FEED contract for the expansion project was awarded to McDermott in November 2019. The FEED contract for the onshore facilities was awarded to the Japanese engineering firm Chiyoda Corporation.

The first gas from the project is predicted to be delivered by the end of 2023. The North Field LNG Expansion Project is part of the Qatari government’s bid for more sustainable development by 2030 and their National Vision 2030.

In January 2022, QatarEnergy awarded a major EPCI (Engineering, Procurement, Construction, and Installation) contract for $500 million for the offshore scope of the project to McDermott.

Arctic LNG 2 Project, Russia

The Arctic LNG 2 Project, worth $25.5 billion, is taking place in the Gyda Peninsula in the Siberia region of Russia. It’ll be located along the Ob river, opposite the Yamal LNG site. The project involves the development of 3 liquefaction trains with a production capacity of 19.8 mtpa of LNG and 1.6 mtpa of initial condensate. Each train will have a capacity of 6.6 mtpa.

The project is owned and operated by Arctic LNG 2 (LLC), a joint venture between Novatek (60%), TotalEnergies (10%), China National Petroleum Corporation (CNPC, 10%), China National Offshore Oil Corporation (CNOOC, 10%), and Japan Arctic LNG (10%). Japan Arctic LNG is a consortium consisting of Japanese companies Japan Oil, Gas and Metals National Corporation (JOGMEC) and Mitsui.

The project aims to produce about seven billion barrels of oil equivalent from the onshore Utrenneye gas and condensate field located in the same region.

In 2018, Novatek finished the front-end engineering design (FEED) and began site preparations. They started building the first phases of the power supply facilities, drilling production wells, and constructing the quayside.

The project involves some exciting new technologies which both reduce the cost of the project and its environmental footprint. As explained by TotalEnergies,

‘To reduce our environmental footprint but also the exposure of construction staff to Arctic conditions and optimize costs through industrialization, the Arctic LNG 2 project has taken an innovative approach with the installation of liquefaction facilities onboard concrete gravity-based structures (GBS).’

FID for the project was reached in September 2019. Construction for the project is ongoing and the first train for the Arctic LNG 2 project is expected to start up in 2023, the second one in 2024, and the final one in 2025. First gas production is predicted for the end of 2023.

NES Fircroft and LNG

Our recruiters’ source candidates for some of the biggest energy projects across the world, with jobs available across various industry verticals.

Through tailored workforce solutions, we’ll help energy clients to staff their projects, and through demonstrable experience (we’re proud to look after over 12,500 contractors), our discipline-specific recruiters will help support contractors on their assignments, and help candidates prepare for the job market.