QatarEnergy, TotalEnergies to Collaborate on North Field East Project

Signing the agreement between QatarEnergy and TotalEnergies on Sunday (Asharq Al-Awsat)
Signing the agreement between QatarEnergy and TotalEnergies on Sunday (Asharq Al-Awsat)
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QatarEnergy, TotalEnergies to Collaborate on North Field East Project

Signing the agreement between QatarEnergy and TotalEnergies on Sunday (Asharq Al-Awsat)
Signing the agreement between QatarEnergy and TotalEnergies on Sunday (Asharq Al-Awsat)

QatarEnergy signed a partnership deal with France's TotalEnergies on Sunday for the North Field East expansion of the world's largest liquefied natural gas (LNG) project.

QatarEnergy's chief executive said more partners would be announced in the coming days.

The Gulf state is partnering with international energy companies in the first and largest phase of a nearly $30 billion expansion of the North Field project.

Saad al-Kaabi, Qatar’s energy minister and head of Qatar Energy, said the selection process for partners has been finalized and subsequent signings could be announced as soon as next week.

No company will have a stake higher than TotalEnergies, he added.

TotalEnergies Chief Executive Patrick Pouyanne said the company will have 25 percent of one train - or liquefaction and purification facility - in the project.

Known as the North Field Expansion (NFE), the plan includes six mega LNG trains to scale its liquefaction capacity from 77 million tons per annum to 126 mtpa by 2027.

Kaabi said Qatar has a unified approach, where all four trains are considered one unit.

TotalEnergies' 25 percent stake in one virtual train gives it around 6.25 percent of the whole four trains.

"We had announced that we are no longer investing in any new project in Russia, so the signing of this project in Qatar is important for us," said Pouyanne.

Kaabi said once the investments have been completed, Asian buyers are expected to make up half the market for the project, and buyers in Europe the rest.

Exxon Mobil Corp, Shell, ConocoPhillips and Eni will also participate in the North Field expansion, sources said.

The project will boost Qatar's position as the world's top LNG exporter and help to guarantee long-term supply of gas to Europe as the continent seeks alternatives to Russian flows, said people with knowledge of the matter.

The NFE project is set to boost Qatar’s position as the world’s top LNG exporter. It will also help to guarantee long term supply of gas to Europe after the shortage produced as a consequence of Russia’s invasion of Ukraine.

The top oil and gas producers have been eager to secure a stake in the project, but Qatar's strategy has been to raise the bar on what it expects from potential partners.

QatarEnergy has waited nearly five years to sign partnership agreements and has emphasized that it has abundant capital to self-finance the project.

Total, Exxon, Shell, Italy's Eni and Chevron have offered QatarEnergy opportunities to invest in prize assets they hold overseas. That move has helped QatarEnergy transform into a significant international player, with stakes in petrochemical facilities and oil blocks around the world, from South Africa to Suriname.



Oil Steady as Investors Shift Focus to Demand Signals

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Steady as Investors Shift Focus to Demand Signals

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices edged higher on Thursday as investors remained cautious about the Iran-Israel ceasefire and shifted their attention to market fundamentals after a stockdraw in the United States.

Brent crude futures rose 34 cents, or 0.5%, to $68.02 a barrel by 1055 GMT US West Texas Intermediate crude gained 35 cents, or 0.5%, to $65.27 a barrel.

Both benchmarks climbed nearly 1% on Wednesday, recovering from losses earlier in the week after data showed resilient. US demand. Brent futures are trading below their close of $69.36 on June 12, the day before Israel started air strikes on Iran, Reuters reported.

Investors are shifting their focus to macroeconomics and oil balances, while monitoring the Israel-Iran truce, said PVM analyst Tamas Varga.

UBS analyst Giovanni Staunovo said oil prices had tracked equity markets so far on Thursday, while ANZ analysts said the US driving season had started slowly but was now stoking demand.

US crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration said on Wednesday.

Crude inventories fell by 5.8 million barrels, the EIA said, exceeding analysts' expectations in a Reuters poll for a 797,000-barrel draw.

Gasoline stocks unexpectedly fell by 2.1 million barrels, compared with forecasts for a 381,000-barrel build as gasoline supplied, a proxy for demand, rose to its highest level since December 2021.

On Saturday, Igor Sechin, the head of Russia's largest oil producer Rosneft, said OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies including Russia, could bring forward its output hikes by around a year from an initial plan.

Meanwhile, US President Donald Trump hailed the swift end to war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.

Trump also said on Wednesday that the US was maintaining maximum pressure on Iran - including restrictions on sales of Iranian oil - but signalled a potential easing in enforcement to help the country rebuild.