FX.co ★ QatarEnergy taps TotalEnergies as its first international JV partner

Qatar’s Energy Minister Saad Sherida Al-Kaabi said that French company TotalEnergies became the country’s first international joint venture (JV) partner. The company is participating in the expansion of Phase 1 of the North Field East (NFE) project.

CEO of QatarEnergy Saad Sherida Al-Kaabi and TotalEnergies Chairman and CEO Patrick Pouyanné signed off on their new partnership on June 13.

Saad Sherida Al-Kaabi emphasizes that the expansion will boost the export of liquefied natural gas (LNG) up to 110 million tons a year from the current 77 million tons. According to the plan, Phase 1 LNG production is expected to start by the end of 2025. Notably, the project will cost the countries about $28.7 billion, Qatar News Agency pinpointed.

According to the recently signed agreement, “TotalEnergies secured a 25% stake in the new JV in which QatarEnergy holds 75%. The JV in turn will own 25% of the entire NFE project.”

State company Qatar Petroleum controls all components of Qatar's oil sector: exploration, production, processing, transportation, and storage of raw materials. In 2017, the Qatari authorities lifted the moratorium on the development of the Northern Gas field, which was introduced in 2005. This field is part of a larger one (South Pars), the second half of which is being developed by Iran.