ConocoPhillips has been chosen by Qatar Energy as a partner in the North Field East (NFE) expansion project, the single largest project in the LNG industry's history. This announcement is the third in a string about joint ventures for the $28.75 billion expansion project.
His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Mr. Ryan Lance, the Chairman and CEO of ConocoPhillips, signed the partnership agreement during a special ceremony held at QatarEnergy’s headquarters in Doha in the presence of senior executives from both companies.
Pursuant to the agreement signed today, QatarEnergy and ConocoPhillips will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ConocoPhillips will hold the remaining 25% interest. The JV in turn will own 12.5% of the entire NFE project, which has a total LNG capacity of 32 million tons per annum.
In his remarks during the ceremony, His Excellency Minister Al-Kaabi said: “Today, we sign a new partnership agreement that will further enhance our relationship and enable us to benefit from the wide experience of ConocoPhillips in the development of the world’s largest LNG expansion project. Our work together will enable us to meet our target of increasing the State of Qatar’s LNG production capacity from 77 to 110 million tons per annum through the North Field East project, which will start production in 2026.”
His Excellency Minister Al-Kaabi added: “Our collaboration will help produce cleaner energy to meet growing global demand and achieve a realistic energy transition towards achieving our climate change objectives thanks to the project’s industry-leading environmental attributes, including carbon capture and sequestration and other technologies deployed in this project.”
H.E. Minister Al-Kaabi concluded his remarks by saying: “I would like to thank His Highness the Amir Sheikh Tamim bin Hamad Al Thani for His wise leadership and for his unwavering support to Qatar’s energy sector.”
In his remarks during the ceremony, Mr. Ryan Lance said: “ConocoPhillips is delighted to build on our long history of partnering with QatarEnergy and participate in this next phase of development of Qatar's North Field,”
“We recognize that LNG plays an increasingly important role in energy security and the global energy transition,” Mr. Lance concluded.
The NFE project employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.
More partners are slated to join the NFE Project, and the relevant announcements will be made soon.