https://www.energyvoice.com/oilandgas/middle-east/lng-middle-east/446563/total-nfs-lng-qatarenergy/

Total takes stake in next Qatari LNG expansion

TotalEnergies has signed up to take a 9.375% stake in Qatar’s next phase of LNG expansion, North Field South (NFS).

The French company’s chairman and CEO Patrick Pouyanné visited Doha on September 24 to sign the agreement with QatarEnergy (QE).

A 25% stake in the NFS project is available to foreign investors, with QE holding the remaining 75%.

The NFS project will provide an additional 16 million tonnes per year of LNG.?Total was also the first foreign partner?to sign up for the 32mn tpy North Field East (NFE) plan, in June this year.

All told, the two deals will provide Total with another 3.5mn tpy of LNG production net by 2028.

Reports have put Total’s investment in NFS at $1.5 billion, following on from the $2bn investment in NFE.

Qatar is in the process of building up domestic capacity to 126mn tpy by 2028.

The NFS expansion project will involve five platforms, 50 wells and gas pipelines to an onshore processing plant. Production will go to two onshore 8mn tpy liquefaction trains. Total said this NFS phase will benefit from “significant synergies” at NFE.

“We consider Qatar as a long-term strategic country for TotalEnergies and this latest addition to our portfolio marks an important step toward our low-carbon LNG growth objectives, a key pillar of TotalEnergies’ transformation into a sustainable multi-energy company,” said Pouyanne.

“It will also further strengthen our ability, together with Qatar, to support Europe’s energy security.”

Fitting the transition

QE will capture and store CO2 from gas production. Furthermore, it will connect the plant to Qatar’s grid, which Total is also working on providing additional solar power.

QE president and CEO Saad Sherida Al-Kaabi said the company was moving forward with its partners to meet global demand for clean energy. “LNG is the backbone for a serious and realistic energy transition,” he said.

“We are committing significant investments to lower the carbon intensity of our energy products, which constitutes a key pillar of QatarEnergy’s sustainability and energy transition strategy.”

QE sees carbon capture as a critical part of its investment strategy. The company recently signed a deal with GE on devising a new carbon capture roadmap for Qatar.

QE intends to capture 11mn tpy of CO2 in Qatar by 2035. Such a move reduces carbon intensity at its LNG facilities by 35% and upstream facilities by 25%.

In comments after the ceremony, Pouyanné was quoted as saying Total would have taken more of the NFS project if it had been available. A number of companies are likely to be considering such an investment, with some speculation about potential Chinese interest.

https://english.almayadeen.net/news/economics/qatar-signs-15-billion-deal-with-totalenergies-for-lng-expan

France's TotalEnergies on Saturday signed a new $1.5 billion deal to help expand Qatar's natural gas production as Europe struggles to find new energy sources to replace Russian supplies.

The French energy giant will have a 9.3% stake in Qatar's North Field South project, part of the world's biggest natural gas reserves, Qatar Energy Minister Saad Sherida Al-Kaabi mentioned at a signing ceremony.

TotalEnergies chairman Patrick Pouyanne said the French company would invest $1.5 billion in the new field.

The company had already agreed in June to put more than $2 billion into Qatar's North Field East, and Al-Kaabi said, "With this agreement, we see an enhanced position for TotalEnergies as a long term strategic partner."

According to Al-Kaabi, 25%?of the field is to be reserved for foreign firms and more deals will be announced in the coming weeks.

Britain's Shell, Italy's ENI, and US giants ConocoPhillips and ExxonMobil have already signed up to be part of North Field East.

Qatar aims to increase LNG production by more than 60%

Qatar has embarked on a massive expansion of the whole North Field, aiming to increase its liquefied natural gas (LNG) production by more than 60% by 2027.

The boost comes as Europe struggles to replace supplies of Russian oil and natural gas due to anti-Russian sanctions imposed by the European Union over the war in Ukraine.

Al-Kaabi, who is to?host talks with German Chancellor?Olaf Scholz in Doha on Sunday, refused to discuss negotiations with Germany but expressed surprise at media reports that Qatar was insisting on a 20-year supply deal.

The war in Ukraine came as Europe was already facing an energy crisis, and Qatar has hosted multiple visits by European leaders seeking gas supplies.

Europe had to accept longer deals to guarantee supplies

Europe had rejected the long-term deals that Qatar seeks, but a change in attitude has been forced as it faces a looming winter of energy shortages.

"We are in active discussions with the majority of buyers around the world and some are advancing more than others," Al-Kaabi told a news conference after the ceremony.

"For us, 15 years plus constitutes a long term deal," the Qatari Minister added.

Pouyanne considered that Europe had to accept longer deals to guarantee supplies. Producer countries and energy majors have insisted on the need for certainty in contracts to justify the huge investments needed in the gas industry.

"The question is simple -- the longer it (the contract) is, the better the price will be for the buyer," Pouyanne said.

"If you want a cheap price for a short duration, the answer will be 'no'," he added.

Qatar's gas is among the cheapest to produce

It is noteworthy that Qatar is one of the world's top LNG producers, alongside the United States, Australia, and Russia.

State-owned Qatar Energy estimates the North Field holds about 10% of the world's known natural gas reserves. LNG from the North Field is expected to start coming on line in 2026.

South Korea, Japan, and China have traditionally been the main markets for Qatari LNG.

Qatar's gas is among the cheapest to produce and has fuelled an economic boom in the tiny Gulf emirate.