Qatar’s state-owned oil and gas company QatarEnergy has selected Shell as its second international partner in the North Field South (NFS) liquefied natural gas (LNG) expansion project, following the selection of TotalEnergies as the first international partner in the project.
Under the partnership agreement, Shell will obtain a 9.375% participating interest in the 16 million tons per annum (Mtpa) project , out of the 25% interest available for international partners, while QatarEnergy will hold the remaining 75% interest.
Saad Sherida Al-Kaabi , the Minister of State for Energy Affairs, President and CEO of QatarEnergy, 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.
These volumes are a welcome addition given the increasing global concern not just over energy security , but also over a pragmatic energy transition as well as fair and equitable access to cleaner energy.”
This is the second announcement for the NFS partnerships by QatarEnergy, with the third partner to be announced in due course.
Earlier this year, Shell joined the North Field East (NFE) expansion as a holder of a 25% share in a joint venture company. A $28.75 billion investment, NFE is to start production before the end of 2025.
Together, the NFS and the NFE expansion projects form what is said to be the industry’s largest-ever LNG project – the so-called North Field Expansion.
The upstream part of the project will develop the southern area of the North Field with five platforms, 50 wells and gas pipelines to the onshore processing plant. Downstream, there will be two 8 Mtpa liquefaction trains.
It will start production in 2026 and will add more than 48 Mtpa to the world’s LNG supplies by 2027.
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