Page 7 - MEOG Week 27 2021
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MEOG COMMENTARY MEOG
Indeed, in March, QP announced that it would cover double the offered equity stake, but also
not renew the Qatargas 1 joint venture when its offtake commitments and sales and purchase
concession expires at the end of next year. The agreements (SPAs) for double the 32mn tpy vol-
firm will take full control from current partners ume on offer from NFE.
TotalEnergies, ExxonMobil, Marubeni and The company is now in the process of evaluat-
Mitsui. ing the offers. Reuters reported in mid-June that
It is from Qatargas 1 that QP will supply LNG ExxonMobil, Shell, TotalEnergies, ConocoPhil-
to Shell for delivery to China under the new lips, Chevron and Eni had all submitted bids to
agreement between the two companies. participate in NFE. Of those companies, only
Chevron and Eni are not already participants in
What next? Qatar’s existing LNG production.
The move to become the sole participant in Separately, QP has been reported to be in
Qatargas 1 comes as QP becomes increasingly talks with Chinese companies over potential
confident that it has gained all the know-how it participation in NFE.
needs from foreign partners to build and operate The company has not specified when it will
an LNG export facility. announce its NFE partners.
However, it is thought to still want partners to Speculation on who will be part of the pro-
help market its LNG output, and this is probably ject has been ongoing for some time, even before
the main driver behind the offer to buy equity the FID, and Qatar’s stance appears to have
in NFE. evolved over this period. But even as the coun-
And indeed, the interest in participating in try becomes increasingly confident in its LNG
NFE is high. According to QP’s June 23 state- abilities, competition to partner with QP looks
ment, the company not only received offers that set to remain intense for now.
Week 27 07•July•2021 www. NEWSBASE .com P7
