Shell has been selected by QatarEnergy as a fifth partner in the North Field East expansion project in Qatar, described by Shell as the single largest project in the history of the liquefied natural gas industry.
Shell said it would hold a 25 percent share in a joint venture company which will own 25 percent of part of the North Field East project, including the four mega-Trains for processing a combined nameplate LNG capacity of 32 million tonnes per annum.
Shell said its investment in this LNG expansion would support delivery of much-needed supplies of natural gas to markets around the world.
“I am honoured that Shell has been selected by QatarEnergy. Through its pioneering integration with carbon capture and storage, this landmark project will help provide LNG the world urgently needs,” declared Shell Chief Executive Ben van Beurden.
“This agreement deepens our strategic partnership with QatarEnergy which includes multiple international partnerships such as the world-class Pearl GTL asset,” added Van Beurden.
“We are committed to maximize the value of the LNG expansion for the State of Qatar and continue to be a trusted, reliable and long-term partner in Qatar’s continued progress,” he stated.
ExxonMobil Corp., the long-standing partner of Qatar in oil and gas and LNG, was chosen in June to be the fourth signatory of a joint venture stake in the North Field East expansion.
ExxonMobil, like Shell, was awarded a 25 percent interest in the fourth North Field East joint venture that will take QatarEnergy’s overall output to 110 million tonnes per annum from 77 MTPA.
The US major has had a presence in Qatar since 1955 and has long supported the development of the country’s LNG industry and energy sector.
QatarEnergy and ExxonMobil are also partners in the current transformation of the Golden Pass LNG import terminal on the Sabine-Neches Waterway in Texas into an export plant.
The terms for Qatar's NFE expansion joint ventures with Shell and ExxonMobil are the same as those given to the other three shareholders named earlier, France’s TotalEnergies, Italy’s Eni and US major ConocoPhillips.
The expansion of North Field East and increased LNG export capacity is one of Qatar’s key energy objectives.
QatarEnergy is the operator and commenced the North Field East project in 2019. First LNG from North Field East is expected in 2026.
The upstream part of the project is already under way to develop the southeast area of the North Field via eight platforms, 80 wells and gas pipelines to the onshore liquefaction plant.