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Shell joins Qatari LNG project

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QatarEnergy, the state-owned energy company of Qatar, has announced that Shell will be joining TotalEnergies as a selected partner in its North Field South (NFS) project for liquefied natural gas (LNG) production.

Like fellow energy and lubricant giant TotalEnergies, Shell will receive a 9.375% stake in the project, which is expected to produce 16 million tonnes/year of LNG. The remaining 6.25% available for international partners will be awarded in due course to one of the companies already participating in Qatar’s North Field East (NFE) project, which aims to expand the country’s LNG production by 32 million tonnes/year when it comes online in 2026. This means that Eni, ConocoPhillips, or ExxonMobil will be invited as the third partner. QatarEnergy will hold a 75% stake in both the NFE and NFS projects.

Saad Sherida al-Kaabi, the chief executive of QatarEnergy, said the additional LNG volume that the projects would deliver to the market will be especially significant:

“…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.”

A final investment decision on the NFS project is due in the first quarter next year, with the project expected to come online a year earlier than originally anticipated in 2026. Combined with the NFE project, this will raise Qatar’s LNG production capacity from its current 77 million tonnes/year to 126 million tonnes/year.

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