Monday, February 6, 2023

Shell joins Qatar’s North Field South project

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QatarEnergy announced Sunday that it has selected Shell as its second international partner in the North Field South (NFS) expansion project. The project comprises two liquefied natural gas (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.

This follows the selection of TotalEnergies as the first partner, in September.

The partnership agreement was signed on Sunday at QatarEnergy’s headquarters in Doha. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs signed for Qatar. He is also President and chief executive officer (CEO) of QatarEnergy. Representing Shell for the signing was Ben van Beurden, CEO.

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, Minister Al-Kaabi said: “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.”

He added that the volumes are a welcome addition given the increasing global concern not just over energy security, but also over a pragmatic energy transition, and 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.

Qatar said this unique project is characterised 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.

A third partnership for the NFS project is expected to be announced in due course.

Shell also joined Qatar’s North Field East project earlier this year.

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