Page 17 - GLNG Annual Review 2021
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GLNG JULY GLNG
comparable to state-owned Saudi Aramco’s still want partners to help market its LNG out-
debt compared with Saudi sovereign debt. put, and this is probably the main driver behind
“The most obvious comparable to QP is Ara- the offer to buy equity in NFE.
mco, which is roughly 10-15 bps wider than the And indeed, the interest in participating in
sovereign. But QP contributes to 80% of Qatar’s NFE is high. According to QP’s June 23 state-
budget versus 60% for Aramco’s contribution to ment, the company not only received offers that
Saudi Arabia’s budget,” Arqaam Capital’s exec- cover double the offered equity stake, but also
utive fixed income director, Zeina Rizk, was offtake commitments and sales and purchase It is from
quoted by Reuters as saying. agreements (SPAs) for double the 32mn tpy
Now, QP stands to benefit further from volume on offer from NFE. Qatargas 1 that
bringing partners into the NFE project. This is The company is now in the process of evaluat- QP will supply
despite the fact that the Qatari company said ing the offers. Reuters reported in mid-June that
previously that it could go it alone on the expan- ExxonMobil, Shell, TotalEnergies, ConocoPhil- LNG to Shell for
sion. Indeed, in March, QP announced that it lips, Chevron and Eni had all submitted bids to
would not renew the Qatargas 1 joint venture participate in NFE. Of those companies, only delivery to China
when its concession expires at the end of next Chevron and Eni are not already participants in
year. The firm will take full control from current Qatar’s existing LNG production. under the new
partners TotalEnergies, ExxonMobil, Marubeni Separately, QP has been reported to be in talks agreement.
and Mitsui. with Chinese companies over potential partic-
It is from Qatargas 1 that QP will supply LNG ipation in NFE.
to Shell for delivery to China under the new The company has not specified when it will
agreement between the two companies. announce its NFE partners. Speculation on
who will be part of the project has been ongo-
What next? ing for some time, even before the FID, and
The move to become the sole participant in Qatar’s stance appears to have evolved over
Qatargas 1 comes as QP becomes increasingly this period. But even as the country becomes
confident that it has gained all the know-how it increasingly confident in its LNG abilities,
needs from foreign partners to build and operate competition to partner with QP looks set to
an LNG export facility. However, it is thought to remain intense for now.
Annual Review 2021 www. NEWSBASE .com P17
