Qatar Signs 27-Year Gas Supply Deal with France’s Total

 FILED - 21 January 2022, Berlin: The logo of the energy company TotalEnergies is pictured at one of its gas stations in Berlin. (dpa)
FILED - 21 January 2022, Berlin: The logo of the energy company TotalEnergies is pictured at one of its gas stations in Berlin. (dpa)
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Qatar Signs 27-Year Gas Supply Deal with France’s Total

 FILED - 21 January 2022, Berlin: The logo of the energy company TotalEnergies is pictured at one of its gas stations in Berlin. (dpa)
FILED - 21 January 2022, Berlin: The logo of the energy company TotalEnergies is pictured at one of its gas stations in Berlin. (dpa)

Qatar has agreed to supply France's TotalEnergies with natural gas for 27 years, its state energy company announced on Wednesday.

Qatar will supply 3.5 million tons of gas a year under the deal, QatarEnergy said, following two agreements with Total last year for a share of the Gulf state's huge North Field gas expansion project.

"These two new agreements we have signed with our partner TotalEnergies, demonstrate our continued commitment to the European markets in general, and to the French market in particular, thus contributing to France's energy security," Qatari Energy Minister Saad Al-Kaabi said.

Total signed a $1.5 billion deal with QatarEnergy in September last year giving it a 9.3 percent stake in Qatar's North Field South project, the second phase of the field's expansion.

In June 2022, the French energy giant became the first partner in the first phase of the expansion, North Field East, investing more than $2 billion for a 6.25 percent total share.

Deliveries of the gas to southern France are expected to begin in 2026.

"Our commitment to ensure continued and reliable supplies of energy to Europe and the rest of the world is underpinned by our substantial and ongoing investments across the entire gas value chain," al-Kaabi, who is also chief of QatarEnergy added.

Energy security

After Moscow invaded Ukraine last year, European nations have scrambled to replace lost deliveries of natural gas following the withdrawal of Russia from the market.

Under Qatar's North Field expansion of the world's biggest natural gas field, which extends under the Gulf into Iranian territory, Qatar is set to raise its output of liquified natural gas (LNG) by 60 percent or more to 126 million tons a year by 2027.

The main market for Qatari gas has traditionally been found in Asia, led by nations like China, Japan and South Korea.

Qatar's deal with Total is equal in length to those agreed by the China National Petroleum Corporation in June and China's Sinopec in 2022, making it the third such deal, all of which have been the longest in the liquefied gas industry.

Speaking to reporters at the start of construction at the North Field expansion last week, the chairman of TotalEnergies, Patrick Pouyanne, told reporters the North Field Expansion would offer energy security.

"We need more supply. That's clear. Still the market is fragile," Pouyanne said.

"This project is a major one and will give some relief to this market," he added.

Britain's Shell, Italy's ENI and US giants ConocoPhillips and ExxonMobil have also signed deals to partner in the expansion.

Qatar is one of the world's top LNG producers, alongside the United States, Australia and Russia.

Qatar Energy estimates the North Field holds about 10 percent of the world's known natural gas reserves.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.