ADNOC and TAQA Reach $3.8 Billion Deal for Clean Energy and Decarbonization
RIYADH: France’s TotalEnergies on Saturday signed a new $1.5 billion deal with QatarEnergy to help expand the country’s natural gas production as Europe scrambles to find new energy sources to replace supplies Russians.
The partnership agreement was signed by QatarEnergy CEO and the country’s Energy Minister Saad Al-Kaabi and Patrick Pouyanné, CEO of TotalEnergies.
Al-Kabbi said TotalEnergies would hold a 9.375% stake out of a 25% stake in the North Field South project dedicated to international partners.
QatarEnergy will own 75% of NFS.
“We are not overexposed in Qatar. We are happy to invest in new licenses here. Because we cannot invest in Russia, it makes sense to continue investing in Qatar,” Pouyanné said.
He added, “If Qatar had offered more investment, we would have invested more in Qatar.”
The new deal comes at a time when European nations are diversifying their energy imports away from Russia following the invasion of Ukraine.
North Field’s expansion plans include two parts; the North Field East or NFE project and the North Field South project.
The NFE project is expected to increase Qatar’s liquefied natural gas production capacity from 77 to 110 million tonnes per year, while the NFS project will increase the country’s LNG production capacity from 110 to 126 million tonnes per year.
Previously, in June and July, QatarEnergy and TotalEnergies signed five separate partnership agreements under the NFE project worth around $29 billion.
The British Shell, the Italian ENI and the American giants ConocoPhillips and ExxonMobil have already signed up to take part in the North Field East project.
“We are in active discussions with the majority of buyers around the world and some are moving ahead more than others,” Al-Kabbi added.
Qatar is one of the world’s leading LNG exporters, alongside the United States and Australia, and the country aims to increase its gas production by more than 60% by 2027.
QatarEnergy estimates that the North Field holds around 10% of the world’s known natural gas reserves. North Field LNG is expected to begin commissioning in 2026.
(With contributions from Reuters and AFP)