(MENAFN- Gulf Times)
TotalEnergies is not overexposed to Qatar, chairman and CEO Patrick Pouyanne said and noted: 'If Qatar had offered more investments, then we would have invested more in Qatar.”
“Qatar has the largest LNG reserves and is a low-cost producer,” Pouyanne said at a media event alongside HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi, where QatarEnergy announced partnership with TotalEnergies in the North Field South expansion project.
| 'If Qatar had offered more investments then we would have invested more in Qatar,' Pouyanne said at a media event, where QatarEnergy announced partnership with TotalEnergies in the North Field South expansion project |
TotalEnergies will invest around $1.5bn in the planned expansion of Qatar's liquefied natural gas capacity North Field South project, Pouyanne said.
TotalEnergies will have an effective net participating interest of 9.375% in the NFS project (out of a total 25% interest available for international partners) while QatarEnergy will hold a 75% interest.
The other investments in NFS are expected to be announced in the coming weeks.
“We need new capacity for sure, and this will be coming at perfect timing,' he said. 'Most of the leaders of the world have discovered the words LNG,' he said, adding that European countries had to be prepared to strike more long-term deals - and possibly pay a higher price to guarantee energy.
'For security of supply, there is a price,' Pouyanne said.
Qatar's North Field expansion plan includes six LNG trains that will ramp up its liquefaction capacity from 77mn tonnes per year (mtpy) to 126mtpy by 2027.
It awarded contracts for the first phase of the expansion project, North Field East (NFE), which includes four trains, earlier this year.
TotalEnergies has already signed a deal for a stake in the NFE project and Saturday became the first international partner to be announced for the NFS expansion that includes two trains.
In a statement Pouyanne said: 'Following North Field East, we are truly honoured and proud that Qatar has once again chosen TotalEnergies to be QatarEnergy's first partner in North Field South. The State of Qatar's ambitious leadership in further developing its natural gas resources through this expansion project, which ranks among the world's most competitive in terms of costs and low emissions, will make a major contribution to increasing LNG supply in the years to come.
“We consider Qatar as a long-term strategic country for TotalEnergies and this latest addition to our portfolio marks an important step toward our low-carbon LNG growth objectives, a key pillar of TotalEnergies' transformation into a sustainable multi-energy company. It will also further strengthen our ability, together with Qatar, to support Europe's energy security.' Last updated: September 24 2022 07:58 PM
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