TotalEnergies has been awarded a 25% interest in a new joint venture (JV), alongside QatarEnergy (75%). The new JV will hold a 25% interest in the 32-MTPA North Field East (NFE) project, equivalent to one 8-MTPA LNG train.
The NFE, launched by QatarEnergy in summer 2019, is currently under construction. It is intended to increase Qatar’s total LNG export capacity from 77 MTPA to around 110 MTPA by 2027, thanks to the construction of four 8 MTPA trains. The upstream part of the project will develop the southeastern area of the field with 8 platforms, 80 wells, and gas pipelines to the onshore plant.
A Low-Carbon LNG Project
Paying special attention to environmental and climate challenges, TotalEnergies said that the project will apply the highest standards to reduce emissions. The native carbon dioxide (CO2) from natural gas production will be captured and sequestrated in a saline aquifer. In addition, the facilities will be connected to the country’s electrical grid, which will supply a growing portion of renewable electricity — in line with Qatar’s climate ambitions — thanks to the giant Al Kharsaah solar power plant, which is scheduled to come on stream in 2022, and in which TotalEnergies is a partner.
“This is another historic day for TotalEnergies in Qatar, where we have been present for more than 80 years,” said Patrick Pouyanné, chair and CEO of TotalEnergies. “Qatar has huge natural gas resources that it intends to develop further to increase the production of the least expensive, the most environmentally respectful and the best located liquefied natural gas [LNG]. TotalEnergies was present at the beginning of its LNG industry in Qatar some 30 years ago through its interest in Qatargas 1, and then Qatargas 2 in 2005. We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion. It is a clear testimony of the profound trust that the teams have developed together, and it will extend our strategic partnership with Qatar and QatarEnergy for more than 25 years. It is good news for the fight against Climate Change as gas and LNG are key to support the energy transition, and notably the shift from coal to gas in many countries. With its low costs and low greenhouse gas emissions — thanks to carbon capture and storage — the North Field expansion will be an exemplary and major contribution to our low-carbon LNG growth strategy. This new partnership will indeed enable us to reinforce our global LNG portfolio and, together with Qatar, it will support our ability to contribute to Europe energy security.”
LNG Is Now A Major Investment For TotalEnergies
TotalEnergies is the world’s third-largest low-carbon LNG company, with a global market share of around 10% and a global portfolio of nearly 50 MTPA by 2025 thanks to its interests in liquefaction plants in all geographies. The company benefits from an integrated position across the LNG value chain, including production, transportation, trading, and LNG bunkering. TotalEnergies ambition is to increase the share of natural gas in its sales mix to 50% by 2030, reduce the gas value chain’s carbon emissions, eliminate methane emissions, and work with local partners to promote the transition from coal to natural gas.
“This is a historic landmark for Qatar’s energy industry and for the world’s largest LNG development,” said Saad Sherida Al-Kaabi, the minister of state for energy affairs, the president and CEO of QatarEnergy, said. “The North Field East project is an iconic achievement that will not only ensure the optimal utilization of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs.”