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Affiliates of QatarEnergy and TotalEnergies SE have signed two long-term liquefied natural gas (LNG) sale and purchase agreements for the supply of up to 3.5 million tons per annum (mtpa) of LNG from Qatar to France.
Under the agreements, LNG will be delivered ex-ship to the Fos Cavaou LNG receiving terminal in southern France. Deliveries of the LNG are expected to start in 2026 for a term of 27 years, QatarEnergy said in a news release Wednesday. The contract values were not disclosed.
The LNG volumes will be sourced from the two joint ventures between QatarEnergy and TotalEnergies that hold interests in Qatar’s North Field East (NFE) and North Field South (NFS) projects, according to the release.
“These two new agreements we have signed with our partner TotalEnergies demonstrate our continued commitment to the European markets in general, and to the French market in particular, thus contributing to France’s energy security”, Qatar Minister of State for Energy Affairs and QatarEnergy President and CEO Saad Sherida Al-Kaabi said. “The State of Qatar has been supplying the French market with LNG since 2009, and the new agreements reflect the joint effort of two trusted partners, QatarEnergy and TotalEnergies, to provide reliable and credible LNG supply solutions to customers across the globe”.
“Our commitment to ensure continued and reliable supplies of energy to Europe and the rest of the world is underpinned by our substantial and ongoing investments across the entire gas value chain”, Al-Kaabi added. “We are proud that our new LNG expansion in Qatar is the least carbon-intensive project in the world. Our efforts span from bolstering production capacity in Qatar to the development of the Golden Pass LNG export project in the United States, in addition to our commitments in various LNG receiving terminals in Europe, including the Montoir-de-Bretagne LNG Terminal in France”.
TotalEnergies’ partnership in the North Field LNG Expansion Projects comprises a 6.25 percent share in the NFE project and a 9.375 percent share in the NFS project.
Earlier in the month, QatarEnergy officially started construction of the North Field expansion project, which will increase Qatar’s LNG production capacity from 77 mtpa to 126 mtpa by 2026. The project’s groundbreaking ceremony at Ras Laffan Industrial City was attended by Qatar Amir Sheikh Tamim bin Hamad Al Thani, who laid the foundation stone for the project. The project includes six mega trains, each with a production capacity of eight mtpa of LNG, four of which are part of the North Field East expansion project, and two are part of the North Field South expansion project, contributing a total of 48 mtpa to global LNG supplies.
Awarding of Egypt Exploration Block
Meanwhile, QatarEnergy was awarded a new exploration block offshore the Arab Republic of Egypt as part of the 2022 EGAS International Bid Round, the company said in a separate news release.
Egypt’s Ministry of Petroleum and Mineral Resources awarded exploration and production rights for block EGY-MED-E8 (East Port Said) to a consortium composed of QatarEnergy with a 33 percent stake, BP plc with a 33 percent stake, and ENI SpA acting as the operator with a 34 percent stake.
“We are delighted to be awarded the East Port Said block, which further expands our presence in the Arab Republic of Egypt”, Al-Kaabi said. “We look forward to collaborating with the Ministry of Petroleum and Natural Resources, EGAS, and our partners ENI and BP to progress our exploration endeavors”.
Located offshore Egypt’s northeastern Mediterranean coast, the East Port Said block lies in water depths up to 2,625 feet (800 meters) and covers an area of approximately 1,004 square miles (2,600 square kilometers).
QatarEnergy said the award solidifies its position in Egypt’s upstream sector with a total of four offshore exploration blocks, including interests in Red Sea Block 3 and Block 4, and the North Marakia block in the Mediterranean Sea.
