Page 10 - DMEA Week 43 2022

DMEA REFINING & FUELS DMEA

Shell named second foreign partner in NFS

MIDDLE EAST QATARENERGY has named Shell (UK) as its
second foreign partner in the North Field South
(NFS) expansion project, which aims to lift
Qatar’s LNG exports by 16mn tonnes per year
(tpy) by increasing output at the offshore North
field.
The two companies formalised the deal on
October 23 at a ceremony in Doha. Saad Sher-
ida Al-Kaabi, QatarEnergy’s president and
CEO, and Ben van Beurden, Shell’s outgoing
CEO, signed the agreement on behalf of their
companies.
The document gives the multi-national a
9.375% working interest in NFS, according to
a statement from QatarEnergy. This leaves only
6.25% of total equity in the project available for
assignment to other foreign partners, since the
Qatari operator will retain a majority 75% stake.
The Qatari company has not named any
other prospective partners. It selected TotalEn-
ergies (France) as its first foreign partner for the
project in late September.
Al-Kaabi, who also serves as Qatar’s Minister
of State for Energy Affairs, said Shell’s inclusion
in the NFS project was a positive development NFE and NFS will lift the North field’s LNG output to 126mn tpy (Image: TotalEnergies)
for multiple reasons. “The new LNG volumes
[that] Qatar will bring to the market come at a to boost production at North, the Qatari section
time when natural gas assumes greater impor- of a massive offshore gas field in the Persian
tance in light of recent geopolitical turmoil and Gulf. (The Iranian section, which lies on the
amidst the dire need for cleaner energy to meet other side of the maritime boundary between
global environmental objectives. These volumes the two countries, is known as South Pars.) It
are a welcome addition given the increasing will involve the installation of five new produc-
global concern, not just over energy security but tion platforms, the drilling of 50 new wells and
also over a pragmatic energy transition as well the laying of new pipelines to link the field to
as fair and equitable access to cleaner energy,” onshore facilities. The pipelines will bring gas to
he commented. two new LNG production trains with a capacity
Van Beurden also hailed the signing of the of 8mn tpy each.
deal. “I am delighted that Shell’s strategic part- Shell also has a 25% stake in the first phase
nership with QatarEnergy is further deepened of the expansion programme, which is known
through our participation in the North Field as North Field East (NFE). (The other foreign
South project,” he said. “LNG has a key role partners are ConocoPhillips of the US, Eni of
in ensuring energy system reliability and our Italy, ExxonMobil of the US and TotalEnergies
investments with QatarEnergy will support of France.) Together, the NFS and NFE schemes
the energy transition and energy security, two aim to boost gas production at North so as to
of the most fundamental challenges the world bring Qatar’s LNG production capacity up to
faces today.” 126mn tpy, a rise of 48mn tpy, or 61.5%, on cur-
NFS is the second phase of an ongoing effort rent levels of 78mn tpy. ™

NLNG plant still on line after force majeure

MIDDLE EAST THE Nigeria LNG (NLNG) consortium said majeure on October 17 in response to the wide-
on October 21 that it had not completely halted spread flooding that hit 33 of Nigeria’s 36 states,
operations following last week’s decision to explaining that heavy rainfall had already caused
declare force majeure. production stoppages at many of the fields that
NLNG had issued a declaration of force provide its feedstock.

P10 www. NEWSBASE .com Week 43 27•October•2022