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QatarEnergy signs deal with TotalEnergies for North Field South expansion

09/24/2022 | 07:32am EST
The new Qatar Energy logo is pictured during a news conference in Doha

DOHA (Reuters) -QatarEnergy signed a deal on Saturday with TotalEnergies for the North Field South (NFS) expansion of the world's largest liquefied natural gas (LNG) project, and its chief executive said more partnerships would be announced for that phase of the project later.

The NFS project will boost Qatar's position as the world's top LNG exporter and help guarantee long-term supplies of gas to Europe as the continent seeks alternatives to Russian flows.

TotalEnergies Chief Executive Patrick Pouyanne, who travelled to Doha for the signing, said the deal came at a "perfect time" when world leaders particularly in Europe were seeking new LNG supplies. He said TotalEnergies is investing around $1.5 billion in the project.

QatarEnergy chief Saad al-Kaabi said TotalEnergies would have a 9.375% stake out of a 25% stake in NFS dedicated for international partners. QatarEnergy will hold 75% of NFS.

Qatar's North Field expansion plan includes six LNG trains that will ramp up its liquefaction capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027.

It awarded contracts for the first phase of the expansion project, North Field East (NFE), which includes four trains, earlier this year.

TotalEnergies has already signed a deal for a stake in the NFE project and on Saturday became the first international partner to be announced for the NFS expansion that includes two trains.

Shell, Exxon, ConocoPhillips and Eni have all signed deals for stakes in the first phase NFE project.

Pouyanne said the world would need "so much gas" by 2025-2027 and that TotalEnergies was not overexposed to Qatar. "If Qatar had offered more investment then we would have invested more in Qatar," he said.

Kaabi said he could not disclose the total cost of the NFS project as some onshore contracts had not yet been finalised.

(Reporting by Andrew Mills and Maha El Dahan; Additional reporting by Yasmin Hussein; Editing by David Clarke and David Holmes)

By Andrew Mills


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CONOCOPHILLIPS -2.29% 110.02 Delayed Quote.56.00%
EXXON MOBIL CORPORATION -0.84% 103.54 Delayed Quote.70.65%
S&P GSCI NATURAL GAS INDEX 4.10% 287.8172 Real-time Quote.55.05%
TOTALENERGIES SE -0.92% 56.29 Real-time Quote.26.13%
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