TotalEnergies has won a 25% stake in the North Field East (NFE) LNG project, from QatarEnergy (QE).
Construction is under way on the NFE venture, which will have 32 million tonnes per year pf capacity. Total’s stake will give it the equivalent of one 8mn tpy LNG train.
QE said Total was the first international partner on the newly formed NFE venture. The Qatari company currently holds the remaining 75%. Speculation has suggested ExxonMobil may be in line for a stake, in addition to some others.
QE said it had received offers for double the equity available. More partners will join, the QE statement said. It will make the announcements soon.
NFE will boost Qatar’s total LNG capacity to 110mn tpy by 2027, from current levels of 77mn tpy. The project carries a $28.75 billion price tag and is due to reach first LNG by the end of 2025.
The project focuses on the southeast part of the field. It will cover eight platforms, 80 wells and gas pipelines to an onshore plant.
QE and Total have talked of the project’s environmental credentials. It will involve carbon capture and storage (CCS). It will also take solar part from the Al Kharsaah plant, due onstream this year.
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the president and CEO of QatarEnergy, said the deal was a “historic landmark”. The NFE project optimises the use of Qatari resources and will provide clean energy for the world, he said.
“We look forward to working closely with TotalEnergies, who are a long-term strategic partner that we have always trusted to support the efficient and safe delivery of our projects,” Al-Kaabi said.
Al-Kaabi and Total CEO Patrick Pouyanné announced the venture’s launch on June 12.
Pouyanné said the project would involve the production of the “least expensive, the most environmentally respectful and the best located LNG”.
The French company was involved in the first Qatari LNG project, 30 years ago, he said.
“We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion. It is a clear testimony of the profound trust that the teams have developed together, and it will extend our strategic partnership with Qatar and QatarEnergy for more than 25 years,” the CEO said.
“This new partnership will indeed enable us to reinforce our global LNG portfolio and, together with Qatar, it will support our ability to contribute to Europe energy security.”