Qatar named France’s TotalEnergies as its key partner to develop the world’s largest liquified natural gas (LNG) reserves.
QatarEnergy and French-based TotalEnergies signed a partnership agreement to expand the Northeast Field, the world’s largest natural gas reservoir, which has an estimated 10 percent of worldwide reserves.
Qatar is already one of the world’s top LNG producers, alongside the United States and Australia.
The project’s overall cost is estimated at $29 billion, and it aims to increase Qatar’s LNG output capacity from 77 to 110 million tons per year by 2025.
TotalEnergies will acquire a 25 percent stake in a joint venture to be established with QatarEnergy, which will maintain 75 percent of the new entity’s capital.
The new company will own 25 percent of the project that seeks to expand the eastern sector of the North Gas Field, by developing four giant lines with a total capacity of 22 million tons annually valued at an overall cost of $28.8 billion.
During the signing ceremony with Total, CEO of QatarEnergy Saad al-Kaabi, who is also Qatar’s minister of state for energy, said the selection process for partners has been finalized and subsequent signings could be announced as soon as next week.
“This is an important day for the energy industry in Qatar and the world, culminating in Qatar Energy’s efforts over nearly a decade of hard work to reach this level,” he added.
For its part, Patrick Pouyanné, CEO of TotalEnergies, said that the sudden chase for energy in Europe makes the expansion of LNG in Qatar very timely.
South Korea, Japan, and China have become the main markets for Qatar’s LNG, but since the start of the energy crisis that hit Europe last year, the Gulf state has assisted Britain with additional supplies and signed a cooperation arrangement with Germany.