QatarEnergy Tuesday announced the selection of Shell as a partner in the $29bn North Field East (NFE) expansion project, the single largest project in the history of the global LNG industry.
The partnership agreement was signed at the QatarEnergy’s headquarters in Doha by HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy, and Shell CEO Ben van Beurden in the presence of senior executives from both the companies.
Pursuant to the agreement, QatarEnergy and Shell will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while Shell will hold the remaining 25% interest.
In turn, the JV will own 25% of the entire NFE project, which includes four mega LNG trains with a combined nameplate LNG capacity of 32mn tonnes per year.
Earlier, QatarEnergy had signed agreements with TotalEnergies, Exxon, ConocoPhillips and Eni for stakes in the North Field East expansion project.
The agreement with Shell is the fifth and last in a series of partnership announcements in the multi-billion dollar NFE project, which will raise Qatar’s LNG export capacity from the current 77mn tonnes per year to 110mn tpy.
In remarks at the signing ceremony, al-Kaabi said, “We are very pleased to have Shell join us as a partner in this mega project, to which we have committed ourselves. We have lived up to that commitment, as well as to our global reputation as a reliable and trustworthy energy provider. Today’s announcement marks the successful conclusion of the selection of our international energy company partners in the North Field East project, through which QatarEnergy and its partners reaffirm their commitment to the energy transition and to the safe and reliable supply of cleaner energy to the world.”
The Minister noted, “We value our long and fruitful relations and strategic partnership with Shell, not just within the State of Qatar, but in many other locations around the world. And, as one of the largest players in the LNG business, they have a lot to bring to help meet global energy demand and security.”
Al-Kaabi thanked the working teams from QatarEnergy and Shell, as well as the management and working teams of Qatargas.
“We are always indebted to the wise leadership of His Highness the Amir Sheikh Tamim bin Hamad al-Thani, and to his continued guidance and support of the energy sector,” al-Kaabi added.
On his part, Ben van Beurden said, "I am honoured that Shell has been selected by QatarEnergy as a partner in the NFE project. Through its pioneering integration with carbon capture and storage, this landmark project will help provide LNG the world urgently needs at a lower carbon footprint.
“This agreement deepens our strategic partnership with QatarEnergy which includes multiple international partnerships such as the world-class Pearl GTL asset.”
“We are committed to maximise the value of the LNG expansion for the State of Qatar and continue to be a trusted, reliable and long-term partner in Qatar’s continued progress.”
The North Field Expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77mnn tonnes per year to 126mtpy by 2027, following a second expansion (North Field South- NFS).
Four trains will be part of the North Field East (NFE) and two trains will be part of North Field South project.
Last month, al-Kaabi told reporters that QatarEnergy would announce partners for North Field South (NFS) expansion by the end of the year.
NFS project will further increase the Qatar’s LNG production capacity to 126mn tonnes per year by 2027.
With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains (with a capacity of eight mtpy each) and associated offshore and onshore facilities.Last updated: July 06 2022 12:27 AM