TotalEnergies invests an additional $1.5 billion in Qatar

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Qatar announced on Saturday September 24 the signing of a major contract with the French gas and oil giant TotalEnergies for the development of the largest natural gas field in the world, against the backdrop of the energy crisis in Europe caused by the war. Russian in Ukraine.

« QatarEnergy (QE) has selected TotalEnergies as the first foreign partner for the development of the North Field South (NFS) natural gas field “, announced the Qatari hydrocarbon giant in a press release. The French giant had already signed an agreement more than $2 billion with Doha in June for the development of the North Field East (NFE) project. North Field South and North Field East are expansion projects for the offshore North Field, the world’s largest natural gas field that the Gulf country shares with Iran.

Saturday’s deal, signed in Doha by Qatari Energy Minister and QE CEO Saad Sherida al-Kaabi and Patrick Pouyanné, CEO of TotalEnergies, will require an additional $1.5 billion in investment, said Mr. Pouyanné during a joint press conference with the minister. With a 9.375% stake, TotalEnergies “ will have a reinforced strategic role in gas development in Qatar, assured Saad Sherida al-Kaabi. The total participation of foreign companies should be 25%.

The war in Ukraine changed the situation

Qatar is already one of the main producers of liquefied natural gas in the world, along with the United States and Australia. The emirate aims to increase its production by 60% by 2027.

Europe had long opposed the long-term agreements sought by Doha, but the war in Ukraine changed the situation. Several European countries are turning to Qatar, but also Algeria, in order to reduce their dependence on Russian gas.

The total stoppage of Russian gas deliveries via the Nord Stream gas pipeline since September 2 has raised fears in Europe of a serious energy crisis this winter, prompting European governments to call on the population and businesses to reduce their consumption.

(With AFP)


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