The expansion project will raise Qatar’s production capacity of liquefied natural gas from 77 million tons annually to 110 million tons annually.
Qatar Energy and Total Energy signed today, Sunday, a partnership agreement to expand the Northeast Field, the largest single project in the history of the liquefied natural gas industry.
This announcement came at the conclusion of a competitive process – which began in 2019 – to select Qatar Energy’s international partners in the expansion project, which will raise Qatar’s production capacity of liquefied natural gas from 77 million tons per year to 110 million tons per year.
The project, which is expected to start production before the end of 2025 at a cost of 28.57 billion dollars, uses the highest standards of health, safety and environment, including carbon capture and sequestration processes aimed at reducing the project’s total carbon footprint to the lowest possible levels.
Under the partnership agreement signed today, Sunday, Qatar Energy and Total Energy will become partners in a project in which Qatar Energy will own a 75% stake, while Total Energy will own a 25% stake.
In return, the “joint venture” company will own 25% of the Northeast Field Expansion Project, which includes 4 giant LNG production lines with a total capacity of 32 million tons per year.
More partners are scheduled to join the Northeast Field Expansion Project, as the final terms have been agreed upon, and the other partners will be announced soon.
Qatar Energy and Total Energy sign a partnership agreement to expand the Northeast Field. #qenahttps://t.co/hbhTvwRFByhttps://t.co/NuRMkbsdMThttps://t.co/U9ahX1JpKY pic.twitter.com/4fGwVac2Uy
— Qatar News Agency (@QatarNewsAgency) June 12, 2022
Historic day for the energy industry in Qatar
Saad bin Sherida Al Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Energy, said, “This is an important day in the energy industry in Qatar and the world, culminating in Qatar Energy’s efforts during nearly a decade of hard work to reach this moment.”
He stressed – in a press conference on this occasion – that the project to develop the North-East Field is a great historical achievement, which will provide huge resources to the State of Qatar and ensure the optimal use of its natural resources, while at the same time it will provide the world with the clean and most reliable energy it needs.
He added, “Today, at Qatar Energy, we stand on the threshold of a new phase in which we strengthen our commitment to transition to low-carbon energy, and to safe and reliable access to cleaner energy, and we will continue our mission to provide energy to every corner of the world for a better tomorrow for all, and this is our commitment.” .
Al-Kaabi: The North East Field development project is a great historical achievement, which will provide huge resources for the State of Qatar, ensure the optimal use of its natural resources, and at the same time will provide the world with the cleanest and most reliable energy it needs.
For his part, Patrick Pouyanne, Chairman and CEO of Total Energy, said that signing the partnership with Qatar Energy is a new historic day for the company in Qatar, pointing out that Qatar possesses huge natural gas resources that it intends to develop to produce less costly liquefied natural gas. The most environmentally friendly and an ideal place.
“This is good news for efforts to combat climate change, as gas and LNG are key components to support the energy transition, particularly the coal-to-gas transition in many countries,” he said.
“Given its lower costs and lower greenhouse gas emissions, thanks to process electrification and carbon capture and sequestration technologies, the expansion of the North Field will undoubtedly enable us to enhance our growth strategy in the field of low-carbon LNG,” he explained.
“This partnership will enable us to strengthen our global portfolio of LNG and, working with Qatar, will help us contribute towards energy security in Europe,” he added.
It is noteworthy that Qatar Energy had received offers during the partner selection process that exceeded twice the quota offered for participation, which confirms the high investment value of the North East Field Expansion Project, thanks to its economic competitiveness and financial flexibility, as well as its unique environmental advantages.
