QatarEnergy has selected Shell as its second international partner in the North Field South (NFS) expansion project
The partnership agreement was signed by Qatar’s Minister of State for Energy Affairs and chief executive Saad Sherida Al-Kaabi and Shell chief executive Ben van Beurden. The much-anticipated NFS expansion project comprises two LNG mega trains that will have a combined capacity of 16M tonnes per annum (mta) and which will raise Qatar’s total LNG production capacity to 126 mta.
Shell will now have a participating interest of 9.375% in the NFS project, out of the 25% interest allocated for international partners. QatarEnergy will hold the remaining 75% interest.
Mr 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 amid 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 and fair and equitable access to cleaner energy.”
The North Field Expansion Project, comprising NFS and the North Field East expansion projects, is the industry’s largest-ever LNG project. It will start production in 2026 and will add more than 48 mta to the world’s LNG supplies by 2027.
Last week, Qatar awarded Saipem a US$4.5Bn deal for EPC work on the North Field Expansion project. And QatarEnergy kicked off LNG shipping’s largest shipbuilding programme in history this April with South Korean shipyards inking deals for at least 54 vessels.
