Satyendra PathakDoha
QatarEnergy on Sunday announced that it has selected Shell as its second international partner in the North Field South (NFS) expansion project, which comprises 2 LNG mega trains that will have a combined capacity of 16million tons per annum (MTPA) and which will raise Qatar’s total LNG production capacity to 126 MTPA.
The partnership agreement was signed by Minister of State for Energy Affairs and QatarEnergy President and CEO HE Saad Sherida Al Kaabi and Shell CEO Ben van Beurden during a ceremony at QatarEnergy’s headquarters in Doha on Sunday.
Pursuant to the agreement, Shell will have an effective net participating interest of 9.375 percent in the NFS project, out of a 25 percent interest available for international partners. QatarEnergy will hold the remaining 75 percent interest.
Shell has been handed the same percentage of stake In NFS as TotalEnergies was awarded late last month. It leaves just 6.25 percent remaining out of the 25 percent that Qatar Energy said would be available for international partners.
Speaking on the occasion, Kaabi reaffirmed QatarEnergy’s determination to continue dedicating efforts to power lives with cleaner energy in every corner of the world for greater growth and a better tomorrow for all.
Kaabi said, “The new LNG volumes, which Qatar will bring to the market, come at a time when natural gas assumes greater importance in light of recent geopolitical turmoil, and amidst the dire need for cleaner energy to meet global environmental objectives. These volumes are a welcome addition given the increasing global concern not just over energy security, but also over a pragmatic energy transition as well as fair and equitable access to cleaner energy.”
The North Field Expansion Project, comprising NFS and the North Field East (NFE) expansion projects, is the industry’s largest-ever LNG project. It will start production in 2026 and will add more than 48 MTPA to the world’s LNG supplies by 2027.
This unique project is characterised by the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.
Kaabi said earlier this month that the stakes in the NFS project would be awarded to firms already involved in the first phase of the company's LNG expansion North Field East (NFE) project. That leaves ExxonMobil, ConocoPhillips, and Eni as the remaining contenders. “The third partner will be announced in due course,” Kaabi said.
