Home Business Qatar announces multi-billion dollar deal with "Total Energy"

Qatar announces multi-billion dollar deal with "Total Energy"

Qatar announced today, Saturday, that the French company Total Energy has acquired a new stake in Qatar’s plans to expand gas production, choosing it as its main partner.

Qatar Minister of State for Energy and Qatar Energy CEO Saad Sherida Al Kaabi said at a press conference in Doha that the French company, which agreed to invest $2.5 billion in June, will also join efforts to expand Northeast Asia . South Field project in Qatar.

In the amount of 9.375%. #Diameter Energy announces the selection of Total Energy as a partner for the development of the North-South field. New partners will be announced at a later stage#kenarice.twitter.com/17lF69HMzp

— Qatar News Agency (@QatarNewsAgency) September 24, 2022

The minister explained that Qatar Energy will retain a 75% stake in the North-South field, while for all international partners it will be 25%.

For its part, Total Energy CEO Patrick Pouyanneh said the company will invest about $1.5 billion in the South North Field project.

A few months ago, Total Energy received a 6.25% stake in the Northeast field development project in accordance with an agreement signed on June 12 and valid until 2054.

The Qatar News Agency said the French company would be involved in about 10 percent of the project, with new partners to be announced at a later stage.

The North East Field project, due to begin production in 2026, includes the expansion of the offshore North Field, the world’s largest natural gas field, which Qatar shares with Iran.

The North Field contains about 10 percent of the world’s known natural gas reserves, according to Qatar Energy Company. The cost of its expansion is about $29 billion.

The reserves stretch under the waters of the Persian Gulf to the territory of Iran, but international sanctions hinder the efforts of the Islamic Republic to develop its share in the South Pars gas field.

The project is helping Qatar increase LNG production by more than 60 percent, to 110 million tons by 2027.

Total’s CEO said his company would accept a larger share if it were possible, explaining: “We definitely need new (manufacturing) capabilities, and this is happening at the perfect time.”

“Most of the world leaders have discovered the term liquefied natural gas,” he added, adding that European countries need to be ready for longer-term deals and possibly higher prices to guarantee energy. ,” he said.

Al-Kaabi, who will meet the German chancellor in Doha on Sunday, declined to discuss talks with European countries but said some are “more advanced” than others, noting that Qatar is also in talks with the UK.

South Korea, Japan and China are Qatar’s main markets for liquefied natural gas, and after the energy crisis Europe faced last year, Doha helped the UK with additional supplies and announced a cooperation agreement with Germany.

Europe has long refused to sign long-term agreements with Qatar, which Doha seeks to control its production, but the conflict in Ukraine has changed the balance.

Source: AFP + “Kena”

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