QatarEnergy has announced Shell as its second international partner in the North Field South (NFS) expansion project. 

The NFS project consists of two LNG mega-trains with a combined capacity of 16 million tonnes per annum (mtpa). Once completed, this would bring Qatar’s total LNG production capacity to 126 mtpa.

Mr Saad Sherida Al-Kaabi, minister of state for energy affairs, said: “The new LNG volumes, which Qatar will bring to the market, come at a time when natural gas assumes greater importance in light of recent geopolitical turmoil, and amidst the dire need for cleaner energy to meet global environmental objectives.”

According to the announcement, Shell will have an effective net participating stake of 9.375% in the NFS project, out of a 25% interest available for international partners. QatarEnergy will own the remaining 75% of the company.

The North Field is part of the world’s largest gas field, which Qatar shares with Iran.  Iranian authorities refer to their share as the South Pars.

Early this year, state-owned QatarEnergy signed agreements for North Field East (NFE), the first and more significant phase of the two phases of the North Field expansion plan. This phase will include six LNG trains that will increase Qatar’s liquefaction capacity from 77 mtpa to 126 mtpa by 2027.

The project will begin production in 2026. In total, it will add more than 48 MTPA to the world’s LNG supply by 2027.

In an effort to reduce carbon emissions, power for the project will come from the national grid The project will also include carbon capture and sequestration.

Al-Kaabi said: “We are currently injecting 2.5 million tons as we speak, which will grow to over 11 million tons of CO2 per annum by 2035. The solar power station [will be inaugurated] later this month, which has a capacity of 800 MW, providing our national grid with 10% of local demand.”

“These volumes are a welcome addition given the increasing global concern not just over energy security, but also a pragmatic energy transition as well as fair and equitable access to cleaner energy,” he added.