Shell to participate in Qatar’s LNG expansion
The partnership agreement was signed today in a ceremony at QatarEnergy’s headquarters in Doha
Shell has been selected by QatarEnergy as a partner in the North Field East expansion project in Qatar, the single largest project in the history of the liquefied natural gas (LNG) industry.
Pursuant to the agreement, QatarEnergy and Shell will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while Shell will hold the remaining 25% interest. In turn, the JV will own 25% of the entire NFE project, which includes 4 mega LNG trains with a combined nameplate LNG capacity of 32 million tons per annum (MTPA).
Shell’s investment in this LNG expansion will support delivery of much-needed supplies of natural gas to markets around the world. The project will also be integrated with carbon capture and sequestration to reduce emissions.
In remarks at the signing ceremony, His Excellency Mr. Saad Sherida Al-Kaabi said:
“We are very pleased to have Shell join us as a partner in this mega project, to which we have committed ourselves. We have lived up to that commitment, as well as to our global reputation as a reliable and trustworthy energy provider. Today’s announcement marks the successful conclusion of the selection of our international energy company partners in the North Field East project, through which QatarEnergy and its partners reaffirm their commitment to the energy transition and to the safe and reliable supply of cleaner energy to the world.”
Shell Chief Executive Officer, Ben van Beurden said:
"Through its pioneering integration with carbon capture and storage, this landmark project will help provide LNG the world urgently needs with a lower carbon footprint. Lower carbon natural gas is a key pillar of our Powering Progress strategy and will also help us achieve our target of becoming a net-zero emissions business by 2050.
“This agreement deepens our strategic partnership with QatarEnergy which includes multiple international partnerships such as the world-class Pearl GTL asset. We are committed to maximize the value of the LNG expansion for the State of Qatar and continue to be a trusted, reliable and long-term partner in Qatar’s continued progress.”