Qatar Signed Natural Gas Supply Deal with TotalEnergies

SEATTLE (Oil Monster): Qatar has reached an agreement to supply France-based TotalEnergies with natural gas for a period of 27 years. The deal, signed by Qatar Energy, will ensure supply of 3.5 million tonnes of natural gas every year.

It must be noted that TotalEnergies had signed two key agreements with the Qatar state energy company in order to acquire strategic stake in North Field gas expansion project. In June 2022, it had invested over $ 2 billion for a 6.25% stake in the initial phase of the expansion project. Later in September, it has signed a $1.5 billion deal, thus gaining 9.3% stake in the second phase of the expansion project.

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The two new agreements with TotalEnergies demonstrate Qatar’s renewed commitment to the European markets in general, and to the French market in particular. These commitments are underpinned by ongoing substantial investments across the entire value chain, said Saad Al-Kaabi, Energy Minister. The deliveries of natural gas to southern France are expected to commence by 2026, he added.

The North Field gas expansion project will boost Qatar’s liquefied natural gas (LNG) output by almost 60% to more than 126 million tonnes per year by 2027. The deal will help Qatar Energy to diversify its market, thus extending beyond its traditional markets in Asia led by China, Japan and South Korea.