Minister of State for Energy Affairs and President and CEO of QatarEnergy H E Saad Sherida Al Kaabi, and Chairman of the Board and CEO of TotalEnergies Patrick Pouyanné at the agreement signing ceremony yesterday.
QatarEnergy yesterday announced that it has selected TotalEnergies as the first international partner in the North Field South (NFS) expansion project, just a few months after announcing the French energy giant as its first international partner for the $28.75bn North Field East (NFE) expansion project in June.
The NFS project, which comprises 2 LNG mega trains with a combined capacity of 16 million tonnes per annum (MTPA), will raise Qatar’s total LNG export capacity to 126 MTPA.
The partnership agreement was signed by the Minister of State for Energy Affairs, and President and CEO of QatarEnergy, H E Saad Sherida Al Kaabi; and Chairman of the Board and CEO of TotalEnergies, Patrick Pouyanné, during a ceremony which was attended by senior executives from both companies at the QatarEnergy headquarters in Doha.
Pursuant to the agreement, TotalEnergies will have an effective net participating interest of 9.375 percent in the NFS project (out of a total 25 percent interest available for international partners) while QatarEnergy will hold a 75 percent interest.
Addressing the media, Minister Al Kaabi said: “QatarEnergy is moving forward, to help meet growing global demand for cleaner energy, of which LNG is the backbone for a serious and realistic energy transition. We are committing significant investments to lower the carbon intensity of our energy products, which constitutes a key pillar of QatarEnergy’s sustainability and energy transition strategy. We will continue our efforts to power lives in every corner of the world for a better tomorrow for all.”
He added: “I am pleased to welcome TotalEnergies yet again as a partner in our flagship LNG projects."
H E Saad Sherida Al Kaabi said: “I would like to thank the working teams at QatarEnergy and TotalEnergies for their excellent cooperation that led to this agreement. I also would like to thank the Qatargas leadership and project teams for their efforts in implementing the North Field expansion projects on schedule, and with an outstanding safety record. Most importantly, 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.”
According to the Minister, most project contracts have already been awarded, while onshore EPC contract is expected to be awarded in early 2023. Total cost for the NFS project will be determined after all the contracts have been signed during the first quarter of next year, he added.
Minister Al Kaabi also noted that QatarEnergy has concluded the construction and long-term charter contracts for 60 LNG carriers as part of its historic shipbuilding programme in support of both the NFE and NFS expansion projects, while stressing that the number can grow to 100 in the future.
Speaking at the event, Pouyanné said TotalEnergies is investing around $1.5bn in the NFS project, on top of its previous investment in the NFE project valued at around $2bn.
He added: “Following North Field East, we are truly honoured and proud that Qatar has once again chosen TotalEnergies to be QatarEnergy’s first partner in North Field South. The State of Qatar’s ambitious leadership in further developing its natural gas resources through this expansion project, which ranks among the world’s most competitive in terms of costs and low emissions, will make a major contribution to increasing LNG supply in the years to come.
“We consider Qatar as a long-term strategic country for TotalEnergies and this latest addition to our portfolio marks an important step toward our low-carbon LNG growth objectives, a key pillar of TotalEnergies’ transformation into a sustainable multi-energy company. It will also further strengthen our ability, together with Qatar, to support Europe’s energy security.”
The North Field Expansion Project, which is the industry’s largest ever LNG project, consists of two parts — the NFE and the NFS projects. It will start production in 2026 and will add more than 48 MTPA to the world’s LNG supplies. The NFE will increase Qatar’s LNG production capacity from 77 to 110 MTPA, while the NFS project will further increase Qatar’s LNG production capacity from 110 to 126 MTPA.
Five partnership agreements were signed in June and July this year covering the NFE project, which comprises 4 mega LNG trains with a combined capacity of 32 MTPA.
This unique project is characterised by 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. Other partners in the NFS project will be announced in due course.
