QatarEnergy has signed a partnership agreement with ConocoPhillips for its $28.75bn North Field East (NFE) expansion project.
Under the agreement, QatarEnergy and ConocoPhillips will form a new joint venture (JV) that will hold a 12.5% stake in the entire NFE project.
ConocoPhillips will hold a 25% interest in the JV while Qatar’s state-owned oil and gas company will hold the remaining 75% interest.
This results in a stake of 3.1% in the NFE project for ConocoPhillips.
Other partners in Qatar’s North Field expansion project include TotalEnergies and Italy’s Eni, holding 3.1% and 6.3% stakes, respectively, according to Bloomberg News.
The NFE project, which has a total liquefied natural gas (LNG) capacity of 32 million tons per annum (Mtpa), is expected to boost Qatar’s LNG capacity from 77 to 110 million Mtpa.
Claimed to be the single-largest LNG project in the industry, the NFE project is expected to start production in 2026.
Qatar’s Minister of State for Energy Affairs, and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “Today, we sign a new partnership agreement that will further enhance our relationship and enable us to benefit from the wide experience of ConocoPhillips in the development of the world’s largest LNG expansion project.
“Our collaboration will help produce cleaner energy to meet growing global demand and achieve a realistic energy transition towards achieving our climate change objectives, thanks to the project’s industry-leading environmental attributes, including carbon capture and sequestration, and other technologies deployed in this project.”
QatarEnergy plans to announce more partners for the NFE expansion project.