Qatar Energy has entered into an agreement with Total Energy for North Field East
QatarEnergy has signed a partnership agreement with TotalEnergies for the Northfield East expansion of the world’s largest liquefied natural gas (LNG) project, and more partners will be announced in the near future.
The Gulf state is partnering with international energy companies in the first and largest phase of the nearly $ 30 billion expansion of the Northfield project.
Saad al-Kabi, chairman of Qatar Energy and also Qatar’s Minister of State for Energy, said the selection process for the partners was finalized and subsequent signatures could be announced next week.
He also said that the share capital of any company will not be more than Total Energy. Patrick Poyne, chief executive of France-based Total Energy, said the company would own 25 per cent of the train – or liquefaction and purification facility – at the project.
The North Field expansion plan includes six LNG vehicles that will increase Qatar’s liquefaction capacity from 77 million tons per year (mtpa) to 126 mtpa by 2027.
Oil companies have bid for four North Field East expansion trains, the other two being part of the second phase of North Field South.
Al-Kabi said Qatar has a unified approach, where all four trains are considered one unit. TotalEnergies has a 25 per cent stake in a virtual train, giving it 6.25 per cent of the total four trains.
“We have announced that we will no longer invest in any new projects in Russia, so it is important for us to sign this project in Qatar,” Poya said.
LNG to travel to Asia and Europe
Al-Kabi said that once the investment is complete, Asian buyers are expected to create half the market for the project and buyers from the rest of Europe.
The project will enhance Qatar’s position as the world’s top LNG exporter and help guarantee a long-term gas supply to Europe as the continent seeks alternatives to Russian currents.
Leading oil and gas producers are keen to participate in the project, but Qatar’s strategy is to raise the bar on what is expected from potential partners.
Qatar Energy has been waiting nearly five years to sign the partnership agreement, emphasizing that it has sufficient capital to self-finance the project.
Total, Exxon, Shell, Eni and Chevron have given QatarEnergy the opportunity to invest in their prize assets abroad.
The move has helped Qatar Energy become a major international player, with partnerships in petrochemical facilities and oil blocks around the world, from South Africa to Suriname.
