QatarEnergy has selected ExxonMobil as a partner in the nearly $29bn North Field East (NFE) expansion project, the single largest project in the history of the LNG industry.
The partnership agreement was signed at QatarEnergy’s headquarters in Doha yesterday by HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also President and CEO of QatarEnergy, and Darren Woods, Chairman and CEO of ExxonMobil.
The agreement stipulates a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ExxonMobil will hold the remaining 25% interest.
The new JV will own 25% of the entire NFE project, which includes four mega LNG trains with a combined LNG capacity of 32mn tonnes per year.
In his remarks during the ceremony, al-Kaabi said: “Today, we are signing a partnership agreement with ExxonMobil, our strategic and long-term partner, with whom we have enjoyed successful and fruitful relations in Qatar and across the globe. This is primarily due to the mutual trust and confidence between both parties, and to the Qatar’s safe and stable investment climate.
“We look forward to working closely with ExxonMobil to implement this world-scale project, and to live up to our commitment to power lives with cleaner energy in every corner of the world for a better tomorrow for all.”
Al-Kaabi said: “In addition to many energy projects in Qatar, we work with ExxonMobil in the upstream exploration sector in many parts of the world. We are also working closely together on the implementation of the Golden Pass LNG export project in Texas, as QatarEnergy implements its strategy to expand its portfolio in energy projects in Qatar and beyond.”
Al-Kaabi concluded his remarks by saying: “I would like to thank His Highness the Amir, Sheikh Tamim bin Hamad al-Thani for his wise leadership and unwavering support to Qatar’s energy sector.”
Woods said in comments at the ceremony: “ExxonMobil’s scale, unique capabilities, and expertise will contribute to enhancing the North Field’s LNG production capacity, helping to meet the world’s growing demand for energy while supporting a lower-emissions future.”
“This is an important milestone in our longstanding relationship with Qatar and QatarEnergy, which continue to advance their global LNG leadership,” Woods concluded.
The NFE project will expand Qatar’s LNG export capacity from the current 77mn tonnes per year to 110mn tpy.
It is expected to start production in 2026, and employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.