QatarEnergy declared that it has chosen 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.
Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Ben van Beurden, CEO of Shell, inked the partnership agreement today in front of senior officials from both companies at QatarEnergy’s headquarters in Doha.
Out of a 25% interest that is available for international partners, Shell will have an effective net participating interest of 9.375% in the NFS project under the terms of the agreement. The remaining 75% of the shareholding will go to QatarEnergy.
In his remarks during the ceremony, Al-Kaabi emphasized Qatar Energy’s intention to keep investing in projects that provide cleaner energy for people’s lives in every region of the world in order to promote global development and a better future for all.
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.”
This is the second announcement for the NFS partnerships. A third partnership will be announced in due course.