Shell joins QatarEnergy’s LNG expansion project
UK major Shell said July 5 it had been selected as the fifth – and final – partner in QatarEnergy’s $28.75bn North Field East (NFE) expansion project, joining Italy’s Eni, French major TotalEnergies and US majors ExxonMobil and ConocoPhillips.
As with the other partnerships, Shell will hold a 25% interest in a joint venture with QatarEnergy that will in turn hold a 25% interest in four new liquefaction trains with a combined capacity of 32mn mt/yr that will increase Qatar's total LNG export capacity to 110mn mt/yr by 2026. The deal gives Shell a 6.25% equity interest in NFE, the same as ExxonMobil and TotalEnergies, while Eni and ConocoPhillips will each have a 3.12% interest.
Shell said an earlier decision by QatarEnergy to incorporate carbon capture and storage technology into the North Field LNG project was a critical part of Shell’s decision to pursue a position in the expansion.
“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,” Shell CEO Ben van Beurden said. “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.”
Two more trains at North Field South will take Qatar's LNG export capacity to 126mn mt/yr by 2027.