The French oil and gas company will effectively have a net participating interest of 9.37% in the two-train Qatari LNG project, which is out of a total of 25% stake that QatarEnergy will offer to international partners
TotalEnergies gets a stake of 9.37% in the North Field South expansion project. (Credit: QatarEnergy)
QatarEnergy has selected TotalEnergies as its first international partner in the 16 million tons per annum (mtpa) North Field South (NFS) expansion project in Qatar.
As per the terms of the agreement, TotalEnergies will effectively hold a net participating interest of 9.37% in the liquefied natural gas (LNG) project. This is out of a total of 25% stake that QatarEnergy will offer to international partners.
The Qatari energy company will retain a 75% stake in the North Field South expansion project.
TotalEnergies is also part of the $28.75bn North Field East (NFE) expansion project following a joint venture deal signed in June 2022. The French energy company has a participating interest of 6.25% in the North Field East expansion project.
The North Field East and North Field South projects are part of the larger North Field expansion project, which aims to boost the LNG production from the offshore North Field. Put together, the two projects will add 48mtpa to the export capacity of Qatar to increase it to 126mtpa by 2028.
TotalEnergies chairman and CEO Patrick Pouyanné said: “The State of Qatar’s ambitious leadership in further developing its natural gas resources through this expansion project, which ranks among the world’s most competitive in terms of costs and low emissions, will make a major contribution to increasing LNG supply in the years to come.
“We consider Qatar as a long-term strategic country for TotalEnergies and this latest addition to our portfolio marks an important step toward our low-carbon LNG growth objectives, a key pillar of TotalEnergies’ transformation into a sustainable multi-energy company. It will also further strengthen our ability, together with Qatar, to support Europe’s energy security.”
Through its combined participating stakes in the two projects, TotalEnergies will add 3.5mtpa of LNG production to its LNG portfolio by 2028.
The North Field South expansion project will feature two LNG mega trains with a combined capacity of 16mtpa.
Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “QatarEnergy is moving forward, with the support of our partners, to help meet growing global demand for cleaner energy, of which LNG is the backbone for a serious and realistic energy transition.
“We are committing significant investments to lower the carbon intensity of our energy products, which constitutes a key pillar of QatarEnergy’s sustainability and energy transition strategy.”