This is the third in a series of announcements on partnerships in the $28.75bn expansion project. HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy, and Ryan Lance, Chairman and CEO of ConocoPhillips, signed the partnership agreement at the QatarEnergy’s headquarters yesterday.
Pursuant to the agreement signed on Monday, 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 32mn tonnes per year.
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 110mn tonnes per year through the North Field East project, which will start production in 2026.”
“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.”
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, 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 recognise that LNG plays an increasingly important role in energy security and the global energy transition.”
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, QatarEnergy said yesterday.