Wednesday 11 October 2023

#Qatar Energy, TotalEnergies sign 27-year LNG supply agreement | Reuters

QatarEnergy, TotalEnergies sign 27-year LNG supply agreement | Reuters

Qatar on Wednesday secured its largest and longest European gas supply deal from Doha's massive production expansion project, providing France with up to 3.5 million metric tons of Liquefied Natural Gas (LNG) a year for 27 years.

Affiliates of QatarEnergy and France's TotalEnergies signed two long-term sales and purchase supply agreements for delivery to the Fos Cavaou LNG receiving terminal in southern France, with deliveries expected to start in 2026, a statement by QatarEnergy said on Wednesday.

The LNG volumes will be sourced from the two joint ventures between QatarEnergy and TotalEnergies that hold interests in Qatar’s North Field East (NFE) and North field South (NFS) projects.

TotalEnergies’ partnership in the North Field LNG expansion projects is made up of a 6.25% share in the NFE project and a 9.375% share in NFS.

Asia, with an appetite for long-term sales and purchase agreements, has thus far outpaced Europe in locking in supply from Qatar's two-phase expansion plan that will raise its liquefaction capacity to 126 million metric tons a year by 2027 from 77 million.

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