QatarEnergy Announces Partnership with TotalEnergies in the North Field South Expansion Project

QatarEnergy

QatarEnergy announced today that it has selected TotalEnergies as the first international partner in the North Field South (NFS) expansion project.

The NFS project, which comprises 2 LNG mega trains with a combined capacity of 16 million tons per annum (MTPA), will raise Qatars total LNG export capacity to 126 MTPA.

The partnership agreement was signed by HE the Minister of State for Energy Affairs, President and CEO of QatarEnergy Saad Sherida Al Kaabi, and Chairman of the Board and CEO of TotalEnergies Patrick Pouyanne, during a ceremony held today at QatarEnergy's headquarters in Doha and attended by senior executives from both companies.

Pursuant to the agreement, TotalEnergies will have an effective net participating interest of 9.375% in the NFS project (out of a total 25% interest available for international partners) while QatarEnergy will hold a 75% interest.

In his remarks during the ceremony, 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 QatarEnergys 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," His Excellency added.

Talks are ongoing with German utilities RWE AG and Uniper SE, Al Kaabi said.

For his part, Chairman and Chief Executive Officer of TotalEnergies Patrick Pouyanne said that TotalEnergies' investment in the new project will be around $1.5 billion, affirming the historical relations between Qatar and his company and noting that the agreement came "at perfect time" in light of the demand for liquefied natural gas, especially in Europe.

He called on European companies to conclude liquefied natural gas agreements between companies, and not to involve politics, expecting that demand for gas will rise between 2025-2027.

TotalEnergies was the first company to acquire a stake in the North Field East (NFE) project in Qatar last June, and owns 6.25 percent of 33 million tons annually project, which will cost $28.75 billion to build.

The North Field Expansion Project, comprising NFS and the North Field East (NFE) expansion projects, is the industrys largest ever LNG project. It will start production in 2026 and will add more than 48 MTPA to the worlds LNG supplies. Five partnership agreements have been 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 characterized by the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the projects overall carbon footprint to the lowest levels possible.

Other partners in the NFS project will be announced in due course.

(QNA)