QatarEnergy and Eni will form a new joint venture company for the development of the NFE expansion project, where QatarEnergy will have a 75% stake in the JV and Eni will have the remaining 25% stake
Signing of agreement between QatarEnergy and Eni. (Credit: QatarEnergy)
QatarEnergy has selected Italian oil and gas company Eni as a partner in the North Field East (NFE) expansion project, which is claimed to be the single-largest LNG project in the industry.
Representatives from the two companies signed an agreement in a special ceremony held at QatarEnergy’s headquarters in Doha, Qatar.
Under the terms of the agreement, QatarEnergy and Eni will form a new joint venture company (JV) for the development of the NFE expansion project.
QatarEnergy will have a 75% stake in the JV, while Eni will have the remaining 25% stake. The JV own 12.5% of the entire NFE project.
Qatar’s Minister of State for Energy Affairs, and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “I would like to welcome Eni as a new member of Qatar’s LNG family. This agreement will strengthen our mutual cooperation for decades to come.
“It is an important addition to a series of partnerships with Eni, which include upstream exploration projects in a number of locations around the world as QatarEnergy expands its international footprint.
“I would like to thank His Highness the Amir Sheikh Tamim bin Hamad Al Thani for His wise leadership and for his unwavering support to Qatar’s energy sector.”
The NFE project will entail an investment of $28.75bn and expand Qatar’s LNG production capacity from the current 77 million tonnes per annum (MTPA) to 110MTPA.
Its four mega LNG trains have a combined nameplate capacity of 32MTPA.
The announcement marks Eni’s entry into Qatar’s upstream sector, with more partners, are planned to join the NFE expansion project.
Eni said that the strategic move will expand its presence in the Middle East and gains access to a world-leading LNG producer, detaining among the largest natural gas reserves in the world.
It is also a significant milestone in the company’s diversification strategy, adding a cleaner and more reliable energy source to its portfolio.
Eni CEO Descalzi said: “We are honoured and delighted for having been selected as a partner in the North Field East expansion project. As a newcomer joining this world-leading LNG project, we feel the privilege and the responsibility of being a strategic partner of choice for the State of Qatar.
“This agreement is a significant milestone for Eni and fits our objective to diversify into cleaner and more reliable energy sources in line with our decarbonization strategy.
“Eni looks forward to working with QatarEnergy on this project to positively contribute to increasing worldwide gas security of supply.”