LNG News Editor:
French major TotalEnergies is the first oil and gas major to be selected as a partner and shareholder in the Qatar North Field East liquified natural gas expansion project in the Arabian Gulf.
TotalEnergies said it was awarded a 25 percent interest in a new joint venture, alongside national company QatarEnergy, which will hold 75 percent.
Stakes
The TotalEnergies-QatarEnergy venture will own a 25 percent stake in the overall 33 million tonnes per annum in the NFE project. This is equivalent to one 8 million tonnes per annum liquefaction Train.
The NFE project using feed gas from Gulf waters was launched by QatarEnergy in mid-2019 and is currently under construction.
It is intended to increase Qatar's total LNG export capacity from 77 MTPA to around 110 MTPA by 2027 with the building of four 8 MTPA Trains.
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 field 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 such as US major ExxonMobil Corp and Shell in joint ventures with Qatar and a final Train split in ownership between Italy’s Eni, US major ConocoPhillips and QatarEnergy.
“Qatar has huge natural gas resources that it intends to develop further to increase the production of the least expensive, the most environmentally respectful and the best located LNG,” said Patrick Pouyanné, the TotalEnergies Chairman and Chief Executive.
“TotalEnergies was present at the beginning of its LNG industry in Qatar some 30 years ago through its interest in Qatargas 1, and then Qatargas 2 in 2005,” explained the French CEO.
“We are very proud that Qatar has again chosen TotalEnergies, this time as the first partner for its new major phase of LNG expansion,” added Pouyanné.
“This new partnership will indeed enable us to reinforce our global LNG portfolio and, together with Qatar, it will support our ability to contribute to Europe energy security,” the CEO declared.
Saad Sherida Al-Kaabi, the President and CEO of QatarEnergy, praised the successful candidature of TotalEnergies for the “iconic” North Field East project that will not only ensure the optimal utilization of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs.
Strategic relationship
“We look forward to working closely with TotalEnergies, who are a long-term strategic partner that we have always trusted to support the efficient and safe delivery of our projects,” explained Al-Kaabi.
“I would like to thank all the team members in QatarEnergy and TotalEnergies for the excellent collaboration and for all their hard work that has led to this important moment,” he added.
