Qatar picks Shell as second North Field South partner

State-run QatarEnergy (QE) today named Shell as its second international partner for the 16mn t/yr North Field South (NFS) project.

Shell has been handed a 9.375pc stake, the same as TotalEnergies was awarded late last month. It leaves just 6.25pc remaining out of the 25pc that QE said would be available for international partners.

QE chief executive Saad Sherida al-Kaabi said earlier this month that the stakes in the NFS project would be awarded to firms already involved in the first phase of the company's LNG expansion — the 32mn t/yr North Field East (NFE) project. That leaves ExxonMobil, US independent ConocoPhillips and Italy's Eni as the remaining contenders. The third partner "will be announced in due course", QE said. The Qatari company will retain a 75pc in NFS, as it did for NFE.

A final investment decision on NFS is due in the first quarter of 2023, and the project is scheduled to be completed in 2027, one year earlier than originally planned, al-Kaabi said earlier this month. NFE is due on stream in 2026. Together, the two projects will boost Qatar's LNG capacity to 126mn t/yr from around 77mn t/yr now.

"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," al-Kaabi said. "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."

By Nader Itayim