QatarEnergy announced that it has selected Shell as its second international partner in the North Field South (NFS) expansion project, which comprises 2 LNG mega trains that will have a combined capacity of 16 million tons per annum (MTPA) and which will raise Qatar’s total LNG production capacity to 126 MTPA.
The partnership agreement was signed today by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Mr. Ben van Beurden, the CEO of Shell, during a ceremony at QatarEnergy’s headquarters in Doha attended by senior executives from both companies.
Pursuant to the agreement, Shell will have an effective net participating interest of 9.375% in the NFS project, out of a 25% interest available for international partners. QatarEnergy will hold the remaining 75% interest.
In his remarks during the ceremony, H. E. Minister Al-Kaabi reaffirmed Qatar Energy’s determination to continue dedicating efforts to power lives with cleaner energy in every corner of the world for greater growth and a better tomorrow for all.
His Excellency Minister Al-Kaabi added: “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. 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.”
Minister Al-Kaabi welcomed Shell to the NFS expansion project and thanked the working teams at QatarEnergy and Shell for their excellent cooperation that led to this agreement. His Excellency also thanked Mr. van Beurden, who is retiring at the end of the year, for his “distinguished role in advancing our partnership to an unprecedent level and for a relationship that will extend for decades.” The Minister also congratulated Mr. Wael Sawan, who was present at the ceremony, for his appointment as the incoming Shell CEO and wished him all the success.
“I would like to thank the Qatargas leadership and project teams for their efforts in implementing the North Field expansion projects on schedule, and with an outstanding safety record. Most importantly, we are forever grateful to His Highness the Amir Sheikh Tamim bin Hamad Al Thani for his wise leadership and unlimited support of Qatar’s energy sector,” His Excellency the Minister concluded.
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.
This unique project is characterized by the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.
This is the second announcement for the NFS partnerships. A third partnership will be announced in due course.