Qatar’s state-owned petroleum company, QatarEnergy has selected French multinational integrated oil and gas company, TotalEnergies as its first international partner in the North Field East (NFE) expansion project, the single largest project in the history of the LNG industry.
The announcement comes at the end of a competitive process that began in 2019 to choose Qatar Energy’s international partners for the NFE project, which will increase Qatar’s LNG export capacity from 77 million tons per annum (MTPA) to 110 MTPA.
The partnership agreements between the companies were signed at the new headquarters of QatarEnergy.
According to the agreement, QatarEnergy and Total Energies will become partners in a new joint venture company (JV), in which Qatar Energy will hold a 75 percent interest while Total Energies will hold the remaining 25 percent interest.
“The JV in turn will own 25 percent of the entire NFE project, including the 4 mega LNG trains with a combined nameplate LNG capacity of 32 MTPA.” The company said.
The $28.75 billion NFE project, 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.
“This is a historic landmark for Qatar’s energy industry and the world’s largest LNG development. The North Field East project is an iconic achievement 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. We look forward to working closely with Total Energies, who are a long-term strategic partner that we have always trusted to support the efficient and safe delivery of our projects. I would like to thank all the team members in Qatar Energy and TotalEnergies for the excellent collaboration and for all their hard work that has led to this important moment. I also would like to express thanks and appreciation to the project’s team and to the Qatargas organization for continuing to deliver the NFE project, and with an outstanding safety record.”
Mr. Patrick Pouyanne, CEO of Total Energies said that, “This is another historic day for TotalEnergies 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, most environmentally respectful, and the best-located LNG. Total Energies was present at the beginning of its LNG industry in Qatar some 30 years ago through its interest in Qatargas and then Qatargas 2 in 2005.”
“We are very proud that Qatar has chosen again Total Energies, this time as the first partner for its new major phase of LNG expansion. 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’s energy security,” Mr. Pouyanne added.