State-owned Qatar Petroleum plans to raise $7-10bn of debt through its debut bond issuance to fund a part of its $29bn North Field project. The debt is likely to be raised within this quarter through 5Y, 10Y and 30Y bonds, expected to be one of the biggest issuance in the emerging markets. The North Field project located in the Persian Gulf is the world’s largest single non-associated natural gas field. It is owned by Qatar Petroleum and is operated by its subsidiary Qatargas. The expansion will increase Qatar’s liquefied natural gas (LNG) production capacity from 77mn tonnes per annum (Mtpa) to 110Mtpa, an increase of ~43%. According to Bloomberg, the project will raise the capacity to 126 Mtpa by 2027. The expansion project is likely to deliver its first gas by end of 2023 and is aligned with the Qatar government’s National Vision 2030. The expansion will strengthen Qatar’s position as the largest exporter of liquified petroleum gas. The Government of Qatar had issued a $10bn bond in April 2020, which had received a demand of 4.5x. Both Qatar and Qatar Petroleum are rated AA-/Aa3.
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