The state-owned energy company previously named four other partners for the mega project.
London-based firm Shell has become QatarEnergy’s fifth partner for the $28.75 billion North Field East (NFE) Project, the Qatari state-owned gas company announced on Tuesday.
The announcement was made in a joint press conference between QatarEnergy CEO Saad Sherida Al-Kaabi, and Shell’s executive officer Ben van Beurden in Doha.
Beurden also met with Qatar’s Amir Sheikh Tamim bin Hamad Al Thani shortly before the announcement.
Under the agreement signed between QatarEnergy and Shell, the latter gets a 6.25% stake in the major liquified natural gas (LNG) project. Previous partners announced in the project include ExxonMobil, ConocoPhillips, Eni, and TotalEnergies, which was the first to be announced.
The NFE is one of two parts of the $28.75 billion North Field LNG expansion project that is set to boost Qatar’s production from 77 million to 110 million tonnes per annum (MTPA) by 2025.
The second part is the North Field South (NFS) project which will increase Qatar’s LNG production capacity from 110 to 126 MTPA by 2027.
QatarEnergy began looking into potential partners in 2019 for the major project, with production expected to start before the end of 2025. Al-Kaabi told the press last month that the partnerships will last for 27 years, without revealing the total number of companies expected to sign for the NFE.
Reuters had reported in June that Chinese state energy companies would also be involved in the project. However, no announcement has yet been made.
China is among Qatar’s top Asian customers, with the two countries holding long-term agreements.
Last year, QatarEnergy, formerly known as Qatar Petroleum, and Chinese state oil and gas company Sinopec Corp inked a 10-year agreement. Under the agreement, Qatar provides Sinopec with an annual supply of two million tonnes, around 2.8 billion cubic metres, of LNG starting from this year.