QatarEnergy expects more LNG deals with European and Asian buyers and more value added partners (VAPs) are expected to join the multi-billion dollar North Field expansion project, noted HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi.
The North Field expansion comprises North Field South (NFS) and North Field East (NFE) and will increase Qatar’s LNG production capacity from the current 77 MTPY to 126 MTPY in a few years.
Qatar has been securing sales contracts for some of that capacity and is still seeking to place volumes in an effort to ensure the country remains a key supplier for decades to come.
In reply to a question by Gulf Times at a media event at Ras Laffan on Monday, al-Kaabi said “yes” when asked whether more value added partners would be joining the North Field expansion since many long-term deals are being signed with buyers, mostly based in Asia.
In June last year, China National Petroleum Corporation (CNPC) joined the North Field expansion project as the first value added partner.
Last year, al-Kaabi told Gulf Times at a media event held on the sidelines of the event at QatarEnergy, “Our project provides lucrative returns in the industry. So the returns are very high.”
He said, “The way we have structured the project is that 75% in each venture will be with us - QatarEnergy - and the remaining 25% tendered out to competition for international oil companies (IOCs).
“Of the 75% stake we have, 5% is potentially for value added partners. We will only give up 5% of our stake in the project if someone actually secures a long-term market. And add value to the project, long-term. Today’s agreement shows that value addition through CNPC,” al-Kaabi had said.
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