Doha, Qatar: QatarEnergy announced on Sunday that it has selected Shell as its second international partner in the North Field South (NFS) expansion project, which comprises 2 LNG mega trains with a combined capacity of 16 million tons per annum (MTPA).
This brings the country’s total LNG production capacity to 126 MTPA.
The partnership agreement was signed by the Minister of State for Energy Affairs, President and CEO of QatarEnergy Saad Sherida Al-Kaabi, and the CEO of Shell Ben van Beurden, during a ceremony at QatarEnergys headquarters in Doha attended by senior executives from both companies.
The agreement gives Shell an effective net participating stake of 9.375 percent in the NFS project, out of a 25 percent interest available for international partners. QatarEnergy will hold the remaining 75 percent.
“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 amidst the dire need for cleaner energy to meet global environmental objectives,” Al-Kaabi said. “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.”
The North Field Expansion Project, comprising NFS and the North Field East (NFE) expansion projects, is the industry’s largest-ever LNG project. It will start production in 2026 and will add more than 48 MTPA to the world’s LNG supplies by 2027.
The company will announce the third partnership in near future.