Following the request for proposals in relation to partner selection for the North Field East (NFE) LNG project, TotalEnergies has been awarded a 25 percent interest in a new joint venture (JV), alongside national company QatarEnergy (75 percent). The new JV will hold a 25 percent interest in the 32 million tpy NFE project, equivalent to one 8 million tpy LNG train.
The NFE, launched by QatarEnergy in summer 2019, is currently under construction. It is intended to increase Qatar’s total LNG export capacity from 77 million tpy to approximately 110 million tpy by 2027, thanks to the construction of four 8 million tpy trains. The upstream part of the project will develop the south-eastern area of the field with 8 platforms, and 80 wells and gas pipelines to the onshore plant.
Paying special attention to environmental and climate challenges, the project will apply the highest standards to reduce emissions. The native CO2 from natural gas production will be captured and sequestrated in a saline aquifer. In addition the facilities will be connected to the country’s electrical grid which will supply a growing portion of renewable electricity, in line with Qatar’s climate ambitions, thanks to the giant Al Kharsaah solar power plant, which is scheduled to come onstream in 2022, and in which TotalEnergies is a partner.
At the award ceremony, Patrick Pouyanné, chairman and CEO of TotalEnergies, said: “This is another historic day for TotalEnergies in Qatar, where we have been present for more than 80 years. Qatar has huge natural gas resources that it intends to develop further to increase the production of the least expensive, the most environmentally respectful and the best located LNG.
“TotalEnergies was present at the beginning of its LNG industry in Qatar some 30 years ago through its interest in Qatargas 1, and then Qatargas 2 in 2005. We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion.”
In his remarks during the ceremony, His excellency Mr Saad Sherida Al-Kaabi, the minister of state for energy affairs and the president and CEO of QatarEnergy, said: “This is a historic landmark for Qatar’s energy industry and for the world’s largest LNG development. The North Field East project is an iconic achievement that will not only ensure the optimal utilisation of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs.
“Today, QatarEnergy is standing at the threshold of a new era with a stronger commitment to energy transition and to the safe, reliable, and trustworthy access to cleaner energy. We will continue to power lives in every corner of the world for a better tomorrow for all. This is our commitment.
“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. I would like to thank all the team members in QatarEnergy and TotalEnergies for the excellent collaboration and for all their hard work that has led to this important moment.”
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