Qatar Energy Selects Total Energies as First Partner
Qatar Energy Selects Total Energies as the First Partner to Expand the North South Field
Qatar Energy revealed the first company involved in developing the North South Field Expansion project, as France's Total obtained 9.375 percent of the total international partnership stakes of 25 percent, while Qatar Energy will own a 75 percent stake in the South Field expansion project.
Total Energies will invest about $1.5 billion in Qatar's latest massive natural gas development, just three months after it entered the North Field development project.
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His Excellency Eng. Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, Managing Director, and CEO of Qatar Energy said during the signing ceremony of the agreement, which he gathered with Mr. Patrick Bobaneh, Chairman and CEO of Total Energies, at the Qatar Energy headquarters in Doha: Qatar is keen to increase gas production and its liquefaction capacity amid a global increase in fuel demand.
Al-Kaabi said that the project will raise the capacity of liquefied natural gas in Qatar to 126 million tons and that Total and other international oil companies will acquire 25 percent of the project.
The Minister of State for Energy Affairs added: "Qatar Energy is moving forward with its efforts to meet the increasing global demand for cleaner forms of energy, of which liquefied natural gas is the backbone, to be an important tributary of renewable energies in a realistic, serious and reasonable transition to low-carbon energy.
His Excellency explained that the project consists of two giant LNG production lines with a total production capacity of 16 million tons annually, noting that the majority of implementation contracts related to the North Field project, the southern sector, have been signed, except for the engineering, procurement, and construction contract for the onshore facilities of the two production lines, which is expected to be signed at the beginning of 2023
For his part, Patrick Bobaneh, Chairman and CEO of Total Energies, said: Total Energies' investments in the new project will amount to about $1.5 billion, stressing the historical relations that bind Qatar with his company, noting that the agreement came "at the right time." In light of the new demand for LNG, especially in Europe.
Total Energies was the first foreign company to acquire a stake in the Northeast Field project in Qatar last June and owns 6.25 percent of this 33 million tons annually project, which will cost $28.75 billion to build.
It is noteworthy that the North Field Expansion Project, which consists of the eastern and southern parts, is the largest project in the history of the liquefied natural gas industry, and production will start in 2026, adding 48 million tons annually to the world’s LNG reserves. while Qatar Energy has signed five partnership agreements for the project Expansion of the Northeast Field, which includes four giant liquefied natural gas production lines with a total capacity of 32 million tons per year.
This unique project is characterized by the highest standards of health, safety, and environmental preservation, in addition to reducing the overall carbon footprint of the project to the lowest possible level.