As its second international partner in the North Field South (NFS) expansion project, QatarEnergy has selected Shell.
The two LNG mega trains that makeup North Field South have a combined capacity of 16 million tons per year (mtpa), increasing Qatar’s overall LNG production capacity to 126 mtpa.
Saad Sherida Al-Kaabi, the minister of state for energy affairs, and Ben van Beurden, the CEO of Shell, signed the collaboration agreement today in front of senior officials from both businesses at QatarEnergy’s headquarters in Doha.
Out of a 25 percent interest in the NFS project that is open for international partners, Shell will have an effective net participating interest of 9.375 percent under the terms of the agreement. Qatar Energy is hosting the 75% interest that is left.
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Al-Kaabi reiterated Qatar Energy’s intention to keep working to provide people with cleaner energy in every region of the world for increased growth and a better future for all in his statements made during the ceremony.
“The additional LNG quantities that Qatar will supply the market come at a time when natural gas has gained more significance in light of recent geopolitical unrest and the pressing need for cleaner energy to achieve international environmental goals. These volumes are a welcome addition in light of the growing concern around the world over not only energy security but also a realistic energy transition and fair and equitable access to greener energy, according to him.
Al-Kaabi greeted Shell and congratulated the QatarEnergy and Shell working teams for their exceptional collaboration in bringing about this agreement. Shell will be a part of the NFS expansion project. Van Beurden, who will retire at the end of the year, was also praised for his “distinguished contribution in extending our collaboration to an unprecedented level and for a connection that will stretch for decades,” the speaker said.
The president and chief executive officer of QatarEnergy also wished Wael Sawan, who was present at the ceremony, well in his new role as Shell’s new CEO.
In his closing remarks, Al-Kaabi said, “I would like to thank the Qatargas leadership and project teams for their efforts in delivering the North Field expansion projects on schedule, and with a great safety record.
The largest LNG project in the industry to date is the North Field Expansion Project, which consists of the North Field South and North Field East expansion projects. By 2026, it will have added more than 48 mtpa to the global LNG supply since it began production in 2027.
This was the second announcement for the North Field South collaborations, according to QatarEnergy. In due course, a third partner will be revealed. TotalEnergies was selected as the initial partner. The French oil giant received the same 9.375 percent as Shell.