DOHA, Qatar — QatarEnergy has selected ConocoPhillips as a partner in the North Field East (NFE) expansion project, which QatarEnergy boasts is the largest LNG project to date. The company also recently selected Eni as an international partner in the project.
NFE is a $28.75 billion expansion project.
QatarEnergy and ConocoPhillips will become partners in a new joint venture (JV) company, in which QatarEnergy will hold a 75% interest while ConocoPhillips will hold the remaining 25% interest. The JV in turn will own 12.5% of the entire NFE project, which has a total LNG capacity of 32 million tons per annum.
"Our work together will enable us to meet our target of increasing the state of Qatar’s LNG production capacity from 77 to 110 million tons per annum through the North Field East project, which will start production in 2026," said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, and President and CEO of QatarEnergy.
In the other JV, QatarEnergy will hold a 75% interest while Eni holds the remaining 25% interest. The JV will hold 12.5% interest in the entire NFE project, including the four mega LNG trains with a combined capacity of 32 mtpa.
It is a strategic move for Eni, which expands its presence in the Middle East and gains access to an LNG producer. It is also a significant milestone in the company’s diversification strategy, adding a cleaner and reliable energy source to its portfolio.
More partners are slated to join the NFE Project, and the relevant announcements will be made soon.