Qatar to Supply France's TotalEnergies with Gas

13 Oct 2023 CW Team

Qatar's state energy company, QatarEnergy, has reached an agreement to provide France's TotalEnergies with natural gas over a period of 27 years. The deal entails an annual supply of 3.5 million tonnes of gas and builds upon previous agreements between the two companies. This partnership underscores Qatar's commitment to European markets and France's energy security, according to Qatari Energy Minister Saad Al-Kaabi.

TotalEnergies had previously signed a $1.5 billion deal with QatarEnergy, securing a stake in Qatar's North Field South project. The gas deliveries to southern France are expected to commence in 2026. This agreement comes at a time when Europe is seeking to diversify its sources of natural gas due to geopolitical concerns.

Under the North Field expansion project, which is one of the world's largest natural gas fields, Qatar aims to increase its liquefied natural gas (LNG) production by 60 per cent or more by 2027. This expansion plays a crucial role in enhancing energy security for Europe and other global markets. Qatar's partnership with TotalEnergies is notable for its 27-year duration, making it one of the longest deals in the liquefied gas industry. Other major energy companies, including Shell, ENI, ConocoPhillips, and ExxonMobil, have also joined the North Field expansion project.

Qatar is a significant LNG producer, and its North Field is estimated to hold approximately 10 per cent of the world's known natural gas reserves. This partnership signifies Qatar's continued role as a vital player in the global energy market.

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