QatarEnergy And ConocoPhillips Tie-Up For LNG Expansion Project
Qatar–QatarEnergy and ConocoPhillips signed a deal on Monday for the Gulf state’s North Field East expansion, the world’s largest liquefied natural gas (LNG) project.
Qatar is partnering with international companies for the $29 billion LNG expansion project that will boost Qatar’s position as the world’s top LNG exporter. Qatar has also signed a deal with TotalEnergies and Eni for the LNG project. TotalEnergies is a French Petroleum business company. Eni is an Italian multinational oil and gas company. Qatar Energy and Eni are also partners in oil and gas projects in Oman, Mexico, Morocco, and Kenya.
According to media reports, the companies will form a joint venture that will take a 12.5% stake in North Field East expansion and ConocoPhillips will have a 25% stake in that joint venture. The Italian company will take a 3.1 per cent stake in the project.
Partnerships with international companies
ConocoPhillips invested in the project to boost Qatar’s exports of fuel. QatarEnergy is a state-owned petroleum company in Qatar. ConocoPhillips is an American Natural gas liquids company.
QatarEnergy CEO Saad al-Kaabi said that the partnerships with international companies would be effective for 27 years. Kaabi further said that Asian buyers are expected to make up half the market for the project.
Reportedly, the project will include four new liquefaction and purification facilities, or trains, that will raise Qatar’s annual LNG-production capacity to 110 million tons from 77 million by 2027.
Demand for LNG
Demand for LNG increased rapidly due to the Russia-Ukraine war. European countries are speeding up efforts to quit dependency on Russian gas completely before the end of the decade.
Earlier, the European Commission published plans to cut EU dependency on Russian gas by two-thirds this year. Egypt and Israel also signed a deal with the European Union on June 15 to increase LNG sales to EU countries.