Minister of State for Energy Affairs, the President and CEO of QatarEnergy H E Saad Sherida Al Kaabi, and Chairman of the Board and Chief Executive Officer of TotalEnergies Patrick Pouyanné, signing the partnership agreements in Doha, yesterday.
Doha: QatarEnergy yesterday announced that it has selected TotalEnergies as its first international partner in the $28.75bn North Field East (NFE) expansion project, the world’s largest LNG development and the single largest project in the history of the LNG industry.
Minister of State for Energy Affairs, the President and CEO of QatarEnergy H E Saad Sherida Al Kaabi and Chairman of the Board and Chief Executive Officer of TotalEnergies Patrick Pouyanné signed the partnership agreements at a ceremony which was also attended by senior executives from QatarEnergy and TotalEnergies.
The announcement came at the conclusion of a competitive process which started in 2019 to select QatarEnergy’s international partners in the NFE project, which will expand Qatar’s LNG export capacity from the current 77 million tonnes per annum (mtpa) to 110 mtpa.
The NFE project, which is expected to start production before the end of 2025, employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.
When coupled with the North Field South expansion project, the combined output will further raise Qatar’s total LNG production to 126 mtpa, making the country by far the largest single LNG producer in the world.
Pursuant to the agreements signed yesterday, QatarEnergy and TotalEnergies will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75 percent interest while TotalEnergies will hold the remaining 25 percent. The JV in turn will own 25 percent of the entire NFE project, including the four mega LNG trains with a combined nameplate LNG capacity of 32 mtpa.
Addressing a press conference, Minister Al Kaabi 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. Today, QatarEnergy is standing at the threshold of a new era with a stronger commitment to energy transition and to the safe, reliable, and trustworthy access to cleaner energy. We will continue to power lives in every corner of the world for a better tomorrow for all. This is our commitment”.
The Minister went on to reiterate the long-term strategic partnership between the two companies, and thanked all the team members for making the successful collaboration a reality. Minister Al Kaabi also thanked the project’s team and the ‘Qatargas organisation for continuing to deliver the NFE project with an outstanding safety record’.
“We are forever grateful to the wise leadership of the Amir H H Sheikh Tamim bin Hamad Al Thani and for His unlimited support of Qatar’s energy sector,” he concluded.
Also speaking during the event, Pouyanné said: “This is another historic day for TotalEnergies in Qatar, where we have been present for over 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. 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.
“We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion. It is a clear testimony of the profound trust that the teams have developed together, and it will extend our strategic partnership with Qatar and QatarEnergy for more than 25 years.
“It is good news for the fight against Climate Change as gas and LNG are key to support the energy transition, and notably the shift from coal to gas in many countries,” he added.
Pouyanné also said that the North Field expansion will be an ‘exemplary and major contribution to our low-carbon LNG growth strategy, with its low costs and low greenhouse gas emissions due to carbon capture and storage’.
“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,” he concluded.
As part of the partner selection process, QatarEnergy had received offers for double the equity available, underscoring the high-quality investment case of the multi-billion-dollar NFE project for its economic competitiveness, financial resilience, and its unique environmental features. More partners are slated to join the NFE Project, as final terms have been agreed and the relevant announcements will be made soon.
