QatarEnergy signs up Italy’s Eni as second equity partner for Qatar’s North Field East expansion project

Monday, 20 June 2022
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QatarEnergy has signed up Italy’s Eni as a newcomer and the second overall equity partner for Qatar’s North Field East (NFE) expansion project for which French major TotalEnergies was the first signatory of a joint venture agreement.

QatarEnergy President and Chief Executive Saad Sherida Al-Kaabi and his Eni counterpart Claudio Descalzi signed the partnership agreement at a ceremony in Doha in Qatar.

The Qataris will hold a 75 percent interest while Eni will own the remaining 25 percent interest.

The Qatar-Eni venture will hold a 12.5 percent interest in the entire NFE project, including four mega-Trains, each with 8 million tonnes per annum of capacity.

The NFE project will expand Qatar’s LNG export capacity from the current 77 MTPA to 110 MTPA in what is a $28.75 billion investment.

QatarEnergy said the agreement with Eni marked the completion of a competitive process started in 2019 and has a duration of 27 years.

“We are honored and delighted for having been selected as partner in the North Field East expansion project,” said CEO Descalzi.

“As a newcomer joining this world-leading LNG project, we feel the privilege and the responsibility of being a strategic partner of choice for the State of Qatar,” declared Descalzi.

Gas security

“Eni looks forward to working with QatarEnergy on this project to positively contribute to increasing worldwide gas security of supply,” he stated.

TotalEnergies signed a similar deal on June 12 with QatarEnergy’s NFE expansion.

The NFE project using feed gas from Gulf waters was launched by QatarEnergy in mid-2019 and is currently under construction offshore.

A second phase of Qatar's LNG expansion is already on the drawing board and will further increase LNG production capacity from 110 MTPA to 126 MTPA.

The 33 MTPA Qatari first-phase expansion is just 5 MPTA short of the combined output of 38 MTPA of the two largest Asian LNG-producing nations of Malaysia and Indonesia.

The upstream part of the NFE project will develop the southeast area of the North Field resources and will comprise eight platforms, 80 wells and gas pipelines to the onshore liquefaction plant.

Other partners for the three other additional 8 MTPA Trains are expected to include companies with existing shares in Qatar’s LNG, US major ExxonMobil Corp, Shell and possibly ConocoPhillips.

TotalEnergies noted that it was present at the beginning of the LNG industry in Qatar some 30 years ago through its interest in Qatargas 1, and then Qatargas 2 in 2005.

The project partners noted that the NFE project was paying special attention to environmental and climate challenges.

“The native CO2 from natural gas production will be captured and sequestrated in a saline aquifer,” said a statement.

“In addition, the facilities will be connected to the country's electrical grid, which will supply a growing portion of renewable electricity, in line with Qatar’s climate ambitions, thanks to the giant Al Kharsaah solar power plant, which is scheduled to come on stream in 2022 and in which TotalEnergies is also a partner,” it added.


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