- Title: QatarEnergy signs deal with TotalEnergies for North Field East project
- Date: 12th June 2022
- Summary: DOHA, QATAR (JUNE 12, 2022) (REUTERS) ***WARNING: CONTAINS FLASH PHOTOGRAPHY*** QATARI MINISTER OF STATE FOR ENERGY AFFAIRS AND PRESIDENT AND CEO OF QATARENERGY, H.E. SAAD SHERIDA AL-KAABI, WALKING TO PODIUM QATARENERGY LOGO KAABI AND CHAIRMAN OF THE BOARD AND CEO OF TOTALENERGIES, PATRICK POUYANNE, DURING SIGNING CEREMONY OF THE PARTNERSHIP DEAL BETWEEN QATARENERGY AND TOTALENERGIES FOR THE NORTH FIELD EAST PROJECT AT THE QATAR ENERGY HEADQUARTERS, IN DOHA (SOUNDBITE) (English) QATARI MINISTER OF STATE FOR ENERGY AFFAIRS AND PRESIDENT AND CEO OF QATARENERGY, H.E. SAAD SHERIDA AL-KAABI, SAYING: "Today I am pleased to welcome my very good friend Mr. Patrick Pouyanne. The chairman of the board and the chief executive officer of TotalEnergies and to announce the selection of TotalEnergies, as QatarEnergy's first partner in the North Field East project." POUYANNE TALKING TO KAABI DURING CEREMONY (SOUNDBITE) (English) QATARI MINISTER OF STATE FOR ENERGY AFFAIRS AND PRESIDENT AND CEO OF QATARENERGY, H.E. SAAD SHERIDA AL-KAABI, SAYING: "They came in into one train where they own 25 percent of one train, but the way we’ve structured the deal is that, what they sign as one revenue stream, if you will, as one train that they own, but we have really a unified approach where all the four trains of the North Field East expansion are considered one unit in production, in maintenance in delivery and so on." CEREMONY IN PROGRESS (SOUNDBITE) (English) QATARI MINISTER OF STATE FOR ENERGY AFFAIRS AND PRESIDENT AND CEO OF QATARENERGY, H.E. SAAD SHERIDA AL-KAABI, SAYING: "We will be announcing subsequent signings in the very near future, I think one is at the end of this week." AUDIENCE AT CEREMONY (SOUNDBITE) (English) CHAIRMAN OF THE BOARD AND CEO OF TOTALENERGIES, PATRICK POUYANNE, SAYING: "But the fundamentals of these projects are strong and it’s why we are, again, very pleased and we have do all what we could today to convince you to become your partner and happy that we succeeded." CEREMONY IN PROGRESS (SOUNDBITE) (English) CHAIRMAN OF THE BOARD AND CEO OF TOTALENERGIES, PATRICK POUYANNE, SAYING: "I will also say that as you agreed together, gas is part of the transition, the transition fuel, and it’s fossil fuel but it emits less CO2 when we make power and here in Qatar with the expansion of North Field East we are even doing deeper because we have linked this project to some low carbon processes and as well to carbon capture and storage." POUYANNE AND KAABI SIGNING DEAL (SOUNDBITE) (English) QATARI MINISTER OF STATE FOR ENERGY AFFAIRS AND PRESIDENT AND CEO OF QATARENERGY, H.E. SAAD SHERIDA AL-KAABI, SAYING: "You'd be interested to know there is nobody going to have a higher stake than TotalEnergies in this project." LOGO OF QATARENERGY POUYANNE AND KAABI SHAKING HANDS TO AUDIO OF AUDIENCE CLAPPING
- Embargoed: 26th June 2022 13:55
- Keywords: Doha Gas Gulf Partnership deal Qatar QatarEnergy TotalEnergies
- Location: DOHA, QATAR
- City: DOHA, QATAR
- Country: Qatar
- Topics: Company News Markets,Economic Events,Middle East
- Reuters ID: LVA001434312062022RP1
- Aspect Ratio: 16:9
- Story Text: QatarEnergy signed a partnership deal with TotalEnergies on Sunday for the North Field East expansion of the world's largest liquefied natural gas (LNG) project, and its chief executive said more partners would be announced in the coming days.
The Gulf state is partnering with international energy companies in the first and largest phase of a nearly $30 billion expansion of the North Field project.
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.
No company will have a stake higher than TotalEnergies TTEF.PA, he added. TotalEnergies Chief Executive Patrick Pouyanne said the company will have 25% of one train - or liquefaction and purification facility - in the project.
The North Field Expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027.
Oil majors have been bidding for four trains of the North Field East expansion, with the other two trains part of a second phase, North Field South.
Kaabi said Qatar has a unified approach, where all four trains are considered one unit. TotalEnergies' 25% stake in one virtual train gives it around 6.25% of the whole four trains.
"We had announced that we are no longer investing in any new project in Russia, so the signing of this project in Qatar is important for us," said Pouyanne.
Kaabi said once the investments have been completed, Asian buyers are expected to make up half the market for the project, and buyers in Europe the rest.
Exxon Mobil Corp XOM.N, Shell SHEL.L, ConocoPhillips COP.N and Eni ENI.MI will also participate in the North Field expansion, sources said.
The project will boost Qatar's position as the world's top LNG exporter and help to guarantee long-term supply of gas to Europe as the continent seeks alternatives to Russian flows, said people with knowledge of the matter.
The top oil and gas producers have been eager to secure a stake in the project, but Qatar's strategy has been to raise the bar on what it expects from potential partners.
QatarEnergy has waited nearly five years to sign partnership agreements and has emphasized that it has abundant capital to self-finance the project.
Total, Exxon, Shell, Italy's Eni and Chevron have offered Qatar Energy opportunities to invest in prize assets they hold overseas.
That move has helped Qatar Energy transform into a significant international player, with stakes in petrochemical facilities and oil blocks around the world, from South Africa to Suriname.
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