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QatarEnergy and Total strike 27-year LNG supply deal

TotalEnergies CEO Patrick Pouyanne and QatarEnergy CEO Saad Al-Kaabi sign the agreement in Doha QatarEnergy
TotalEnergies CEO Patrick Pouyanne and QatarEnergy CEO Saad Al-Kaabi sign the agreement in Doha

State-owned QatarEnergy has signed two long-term agreements with France’s TotalEnergies for the supply of up to 3.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG).

The LNG will be delivered to the Fos Cavaou LNG terminal in southern France, with deliveries expected to start in 2026 for 27 years, the Qatari energy firm said in a statement.

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

Qatar’s energy minister and CEO of QatarEnergy Saad Al Kaabi said the new agreements will contribute to France’s energy security.

The new LNG expansion in Qatar is the least carbon-intensive project in the world, Al Kaabi said.

The company will increase production capacity in Qatar to develop the Golden Pass LNG export project in the US and various LNG receiving terminals in Europe, including the Montoir-de-Bretagne LNG Terminal in France.

Qatar has been supplying the French market with LNG since 2009.

TotalEnergies holds a 6.25 percent share in the NFE project and a 9.375 percent share in the NFS project.

QatarEnergy in June signed a 27-year supply agreement with China National Petroleum Corporation for four million metric tonnes of LNG a year. It also signed a deal with China’s Sinopec in November 2022 to export four MTPA of LNG for 27 years.

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