QatarEnergy picks Eni as partner in North Field East LNG project
Qatar’s state-owned oil and gas company QatarEnergy has selected Italian oil and gas company Eni as a partner in its giant North Field East LNG expansion project.
The North Field East LNG project will expand Qatar’s LNG export capacity from the current 77 million tons per annum (mtpa) to 110 mtpa. A $28.75 billion investment, NFE is to start production before the end of 2025. In addition, it promises to deploy state-of-the-art technologies to minimize the overall carbon footprint, including carbon capture and sequestration.
On 19 June, Saad Sherida Al-Kaabi, CEO of QatarEnergy, and Claudio Descalzi, Eni CEO, signed the partnership agreement for the creation of the new joint venture company. QatarEnergy will hold a 75 per cent interest while Eni the remaining 25 per cent interest.
The JV will hold 12.5 per cent interest in the entire NFE project. This includes the four mega LNG trains with a combined capacity of 32 mtpa.
This deal marks the completion of a competitive process started in 2019 and has a duration of 27 years.
According to Eni, this is a strategic move for the company. It expands Eni’s presence in the Middle East and gains access to a major LNG producer.
Earlier this month, French energy major TotalEnergies secured a 25 per cent interest in a new JV. QatarEnergy holds a 75 per cent interest in this JV. This JV will hold a 25 per cent interest in the 32 mtpa NFE project, equivalent to one LNG train of eight mtpa.
“This agreement is a significant milestone for Eni and fits our objective to diversify into cleaner and more reliable energy sources in line with our decarbonization strategy. Eni looks forward to working with QatarEnergy on this project to positively contribute to increasing worldwide gas security of supply,” said Descalzi.