French energy giant signs new natural gas deal with Qatar
26 Sep 2022News
France's Total Energies has signed a new investment deal to expand Qatar's natural gas production as Europe scrambles to find new sources of energy to replace Russian supplies.
Speaking alongside Total Energies Chief Executive Patrick Pouyana on Saturday, Qatari Energy Minister Saad Sharida Al-Kaabi announced that the French energy giant will have a 9.3 percent stake in the North Field South gas project, becoming the first foreign partner in that segment in the wider region.
"Qatar Energy is moving forward to meet global demand for clean energy," Al-Kaabi said, referring to the state-owned petroleum company. Liquefied natural gas (LNG) is seen as a cleaner alternative to fuel oil and coal and a stepping stone in the energy transition.
The project will increase Qatar's LNG capacity to 126 million tonnes.
Al-Kabi said Total Energies will help extract gas from the North Field South, 25 percent of which will be earmarked for foreign energy firms.
The investment deal comes after Total Energies agreed in June to a $2 billion deal to participate in the giant North Field East project, which will help Qatar increase LNG production by more than 60 percent by 2027.