TotalEnergies becomes the first foreign investor in Qatar’s North Field South gas project as Europe scrambles to find new energy sources.
France’s TotalEnergies has signed a new investment agreement to expand Qatar’s natural gas production as Europe scrambles to find new energy sources to replace Russian supplies.
Speaking alongside TotalEnergies chief executive Patrick Pouyanne on Saturday, Qatar’s Energy Minister Saad Sherida al-Kaabi announced the French energy giant would have a 9.3% stake in the North Field gas project. South, becoming the first foreign partner in that vast field.
“QatarEnergy is moving forward, to help meet [the] There is growing global demand for cleaner energy,” al-Kaabi said, referring to the state-owned petroleum company. Liquefied natural gas (LNG) is seen as a cleaner alternative to fuel oil and coal and as a stepping stone in the energy transition.
The project will increase Qatar’s LNG capacity to 126 million tons.
Al-Kaabi said TotalEnergies will also help finance the extraction of gas from North Field South, of which 25% will go to foreign energy companies.
The investment agreement comes after TotalEnergies agreed in June to $2 billion deal participates in the massive North Field East project, which will help Qatar increase LNG production by more than 60% by 2027.
Shell of the UK, Eni of Italy and US giants ConocoPhillips and ExxonMobil have also signed up to participate in the North Field East project.
Pouyanne said TotalEnergies would do a large part of the production if possible. “Most of the world’s leaders have discovered from LNG,” he said. “For the security of supplies, there is a price.”
Qatar and Germany are also discussing natural gas supplies. Kaabi is scheduled to meet German Chancellor Olaf Scholz on Sunday.
Scholz arrived in the Saudi city of Jeddah on Saturday, the first stop of his two-day Gulf tour to negotiate energy cooperation.
Al-Kaabi also confirmed Doha is in talks with the UK.
The Gulf nation is one of the world’s top LNG producers, along with the US and Australia, and LNG from North Field is expected to begin operations in 2026.
QatarEnergy estimates that North Field holds about 10% of the world’s known natural gas reserves.
The reserves extend under the sea into Iranian territory, where Tehran’s efforts to exploit its South Pars gas field have been thwarted by international sanctions.
South Korea, Japan and China are the main markets for Qatar’s LNG. But since a energy crisis hit Europe last year, the Gulf nation helped Britain get more supplies and announced a partnership agreement with Germany.