Qatar announced on Sunday, June 12, that it had chosen the French hydrocarbon giant TotalEnergies as the first foreign partner to develop the largest natural gas field in the world, and, ultimately, to allay Europe's energy fears.

“I am pleased to announce the selection of TotalEnergies as the first partner in the North Field East (NFE) project,” Qatari Energy Minister Saad Sherida Al-Kaabi told a press conference in Doha. .

The French oil and gas group will take a 6.25% stake in the project, which aims to help the Gulf country increase its production of liquefied natural gas (LNG) by 60% by 2027, a-t- he adds. 

The NFE is part of the offshore North Field expansion project, the world's largest natural gas field that Qatar shares with Iran.

"A marriage more than an engagement"

It is "a marriage more than an engagement," said the minister, adding that the agreement will last until 2054.

For TotalEnergies, this agreement is the largest ever concluded with Qatar, and should help compensate for the French group's withdrawal from Russia, said its CEO Patrick Pouyanné, who is in Doha. 

"It's an investment of 2 billion dollars to finance 25% of a train (all the units of a plant ensuring the treatment and liquefaction of gas, editor's note) which costs between 7 and 8 billion dollars" a- he said in an interview with AFP. 

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Other foreign companies will join the project through joint ventures with Qatari hydrocarbon giant QatarEnergy (QE), but no stake will be larger than that of TotalEnergies, Saad Sherida Al-Kaabi said.

"We have completed the selection process and we have signed the agreements," he added, adding that they will be announced in the "near future". 

Exxon Mobil, Shell and ConocoPhilips are in the running, and the share of foreign oil and gas giants is expected to be around 25%, industry sources told AFP. 

A project estimated at 28 billion dollars 

The total cost of the project is estimated by QE at $28 billion, and production is expected to start in 2026, said the Qatari minister, who also heads QE. 

Qatar is one of the world's leading producers of liquefied natural gas, along with the United States and Australia. 

European leaders have been scrambling in the Gulf emirate in recent months, seeking alternatives to Russian gas, amid war in Ukraine, which has given new impetus to LNG projects.

Without giving numbers, Patrick Pouyanné hinted that Qatar got a good price in the negotiations, which started in 2019.  

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"You and your team have defended Qatar's interests very well in this project," he told the Qatari minister during a press conference. 

The North Field accounts for about 10% of the world's known natural gas reserves, according to QE.

These reserves extend under the sea into Iranian territory, where the Islamic Republic's efforts to exploit the South Pars field are hampered by international sanctions.

South Korea, Japan and China are the main customers of Qatari LNG, but since last year Doha has supplied additional quantities to Britain and announced a cooperation agreement with Germany. 

Europe has long opposed the long-term agreements demanded by Qatar, but the conflict in Ukraine has changed the situation. 

With AFP

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