QatarEnergy has selected France’s TotalEnergies as its first international partner in the North Field East (NFE) LNG expansion project, designed to increase Qatars total LNG export capacity from 77 Mtpa to around 110 Mtpa by 2027
TotalEnergies has been awarded a 25% interest in a new joint venture (JV), alongside QatarEnergy (75%). The new JV in turn will hold a 25% interest in the 32 million tons per annum (Mtpa) NFE project, equivalent to one 8 Mtpa LNG train.
The NFE, launched by QatarEnergy in summer 2019, is currently under construction. The upstream part of the project will develop the southeastern area of the field with eight platforms, 80 wells and gas pipelines to the onshore plant.
With a focus on environmental and climate challenges, the project will apply the highest standards to reduce emissions. The native CO2 from natural gas production will be captured and sequestrated in a saline aquifer. 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 a partner.
Patrick Pouyanné, chairman and chief executive officer of TotalEnergies, said, "This is another historic day for TotalEnergies in Qatar, where we have been present for more than 80 years. 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. We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion. With its low costs and low greenhouse gas emissions – thanks to carbon capture and storage – the North Field expansion will be an exemplary and major contribution to our low-carbon LNG growth strategy. 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."
His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the president and CEO of QatarEnergy, said, “This is a historic landmark for Qatar’s energy industry and for the world’s largest LNG development. The North Field East project is an iconic achievement that will not only ensure the optimal utilisation of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs. 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.”
Indrajit Sen, oil & gas editor at MEED, a GlobalData company, commented, “Securing a reliable international investor such as TotalEnergies could not have come at a more opportune time for Qatar, as the Gulf state works to cement its position as a reliable partner for gas supply to Europe amid the current energy crisis.
“Investments from major international energy companies in its ambitious LNG production capacity projects helps Qatar de-risk its investments in the masterplan, as well as bring in international expertise vital for long-term operational efficiency of the sprawling LNG infrastructure.”
More partners are slated to join the NFE Project, and the relevant announcements will be made soon, according to QatarEnergy.
