Doha: Shell Plc is investing in Qatar’s latest liquefied natural gas development, months after buying into another of the Gulf nation’s expansion projects.
Shell will take a 9.375 per cent stake in North Field South, which will expand Qatar’s LNG output capacity by 16 million tons a year, Energy Minister Saad Al-Kaabi said at a signing ceremony in Doha on Sunday.
TotalEnergies SE joined the project in September, also with a 9.375 per cent stake worth around $1.5 billion. Kaabi previously said Qatar was selling a combined holding of 25 per cent to four companies, leaving two more partners to be announced.
Qatar is boosting its production and liquefaction capacity amid a global surge in demand for gas. Supplies were already tight before Russia’s attack on Ukraine sent European nations on a frantic search for alternative sources.
Commenting on a temporary price cap on natural gas in Europe, Shell CEO Ben van Beurden said EU politicians realize the plan is complicated.
“I’m sure this will settle in an appropriate and responsible way that will really benefit both markets and consumers in Europe,” he told the ceremony, adding Europe will have to reduce demand from industry for gas.
Qatar’s North Field South is expected to send out its first cargo in 2027, meaning it won’t ease supply crunches in the next few years.
Qatar is carrying out another LNG project, North Field East, which will cost almost $30 billion and is set to send out its first shipments in 2026. Some supply agreements have already been finalized for that project, Kaabi said.
The two developments will expand Qatar’s potential LNG output to 126 million tons a year from 77 million.
Shell, Total, Exxon, Eni SpA and ConocoPhillips invested in North Field East.
