Qatar adds ConocoPhillips to NFE expansion project
QatarEnergy (QE) said June 20 it has added a third partner to its North Field East (NFE) LNG expansion project, with US major ConocoPhillips joining Italian Eni and French TotalEnergies in striking joint venture (JV) deals.
Similar to the earlier agreements, ConocoPhillips will take a 25% interest in a JV with QatarEnergy that will in turn hold a 12.5% stake in NFE. The structure implies a 3.12% stake for Conoco in the overall NFE project.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
“Today, we sign a new partnership agreement that will further enhance our relationship and enable us to benefit from the wide experience of ConocoPhillips in the development of the world’s largest LNG expansion project,” Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs, said at a signing ceremony in Doha. “Our work together will enable us to meet our target of increasing the State of Qatar’s LNG production capacity from 77mn to 110mn mt/yr through the North Field East project, which will start production in 2026.”
QE has been seeking partners for the four trains that would comprise the 32mn metric tons/year NFE expansion; a second phase, North Field South, would add another two liquefaction trains, with partners in that phase expected to come from those already involved.
“ConocoPhillips is delighted to build on our long history of partnering with QatarEnergy and participate in this next phase of development of Qatar's North Field,” ConocoPhillips CEO Ryan Lance said at the signing ceremony. “We recognise that LNG plays an increasingly important role in energy security and the global energy transition.”
The overall $30bn North Field expansion, which includes NFE and a second phase, North Field South, would increase Qatar’s LNG capacity to 126mn metric tons/year by 2027. More partnerships are expected to be announced soon, with US major ExxonMobil widely rumoured to be a part of those discussions.