Qatar Energy announced today, Sunday, that it has chosen Total Energy as its first partner in the North East Field expansion project, the largest single project in the history of the liquefied natural gas industry. More partners are scheduled to join the field expansion project after agreeing on the final terms, and “partners will be announced soon,” according to the Qatari company.
Qatar Energy said in a press statement that this announcement, after signing the agreement with Total Energy in Doha today, comes at the conclusion of a competitive process that began in 2019 to select Qatar’s international energy 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 2875 billion dollars, uses the highest standards of health, safety and environment, including carbon capture and sequestration, aimed at reducing the project’s total carbon footprint to the lowest possible levels.
Under the partnership agreement, Qatar Energy and Total Energy will become partners in a joint venture company in which Qatar Energy will own a 75% stake, while Total Energy will own the remaining 25% stake in return, and the joint venture company will own 25% of the North East Field expansion project, which includes Four giant LNG production lines with a total capacity of 32 million tons per year.
The agreement was signed in a special ceremony held today at the headquarters of Qatar Energy, Minister of State for Energy Affairs Saad bin Sherida Al Kaabi, and Chairman and CEO of Total, Patrick Pouyanne.
Qatar’s Minister of State for Energy Affairs Saad Al-Kaabi said: “The project to develop the North-East Field is a major historical achievement that will provide huge resources to 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, Total Chairman and CEO, Patrick Pouyanneh, said: “This is a new historic day for the company in Qatar, where we have been for more than 80 years, and the expansion of the North Gala will enable us to enhance our low-carbon LNG growth strategy and will contribute to This partnership strengthens our global portfolio of LNG, and helps us, working with Qatar, contribute towards energy security in Europe.”