Shell buys 9% stake in Qatari LNG project North Field South
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British-Dutch oil and gas company Shell buys a 9.4% stake in the North Field South project of the Qatari company Qatar Energy. The project is to increase production of liquefied natural gas (LNG) at the Severnoye field by 16 million tons per year. The French TotalEnergies has already joined the project.
Shell Chief Executive Ben van Beurden said the agreement should benefit the oil and gas market and European consumers. Bloomberg. However, North Field South will only be operational by 2027.
The French TotalEnergies was the first to join the project: in September it bought a 9.4% stake. In total, 25% of the shares are provided for international partners in the project. Qatar Energy will retain a 75% stake.
The second LNG expansion project in Qatar is North Field East. It is considered the largest in the world. Shares in it belong to Shell, ExxonMobil, ConocoPhillips and Eni. The project should start operating in 2026. Its cost is estimated at $30 billion. These two projects should increase LNG production in Qatar from 77 million to 126 million tons per year.
Europe began to negotiate with the authorities of Qatar on the supply of LNG because of the sanctions against Russia, which restrict the import of Russian gas and oil. Germany will start buy LNG from Qatar by 2024.
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