First gas from the world’s largest LNG development - North Field East (NFE) expansion project, is expected by 2026, HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi said Sunday.
NFE, he said, will increase Qatar’s LNG production capacity to 110mn tonnes per year (MTPY) from 77mn tpy now.
“This is the world’s largest LNG development. It is also a very unique development in the LNG industry because of its advanced environmental characteristics, including significant carbon capture, sequestration technologies and capacity,” he said while addressing the media at the project’s JV agreement signing at QatarEnergy’s new headquarters in Doha Sunday.
QatarEnergy and TotalEnergies will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while TotalEnergies will hold the remaining 25% interest.
The JV in turn will own 25% of the entire NFE project, including the four mega LNG trains with a combined nameplate LNG capacity of 32MTPY.
“Qatar has a unified approach, where all four trains are considered one unit. TotalEnergies' 25% stake in one virtual train gives it around 6.25% of the whole four trains,” al-Kaabi said.
Al-Kaabi said it was "a marriage more than an engagement" as the agreement will last until 2054.
He said, “Selecting our international partners in the project was another key element, which was kicked off through a competitive process that started in 2019. And as I mentioned before, thanks to the project’s economic competitiveness, financial resilience and its unique environmental features, we have received offers for double the offered equity. This is a testament to the attractiveness of this exceptional project and investment.”