QatarEnergy Chooses Shell as Partner for North Field South LNG Project

QatarEnergy Chooses Shell as Partner for North Field South LNG Project

/ Financial News / Tuesday, 25 October 2022 13:20

QatarEnergy 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 16 million tons per annum (MTPA) and which will raise Qatar’s total LNG production capacity to 126 MTPA.

The agreement was signed by His Excellency Saad Sherida Al-Kaabi, the minister of state for energy affairs and president and CEO of QatarEnergy, and Ben van Beurden, the outgoing CEO of Shell.

Shell will hold a 9.375% stake for an undisclosed sum in the NFS project, out of a 25% interest available for international partners. QatarEnergy will hold the remaining 75%.

Commenting on the partnership, Al-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 both NFS and the North Field East (NFE) expansion projects, is the industry’s largest LNG project to date. It will start production in 2026 and will add more than 48 MTPA to the world’s LNG supplies by 2027.

The project exemplifies 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.

This is the second announcement regarding the NFS partnerships. A third partnership will be announced in due course, as per the statement.

Also read: Eni Joins QatarEnergy in NFE LNG Project

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