Qatar’s New LNG Deals Show Gas Will Remain in Global Energy Mix

Those who think that natural gas is a bridge fuel to the future need to think again. It is the future!

Over the past few weeks, QatarEnergy has secured a number of long-term LNG deals with key clients in the Asian and European markets. Supplies will be sourced from the massive North Field expansion project, whose first phase could be ready by 2026.

The first two LNG deals were signed between QatarEnergy and France’s energy major TotalEnergies on October 11. Under the new deals, Qatar will supply France with up to 3.5 million tons per annum (mtpa) of super-chilled fuel for a period of 27 years. This marks the longest and biggest LNG supply deals for Qatar in the European market. Qatari LNG supplies will be delivered to the Fos Cavaou LNG terminal in southern France, with flows expected to start in 2026. LNG volumes will be sourced from the two joint ventures between QatarEnergy and TotalEnergies that hold interest in the North Field East (NFE) and North Field South (NFS) expansion projects.

TotalEnergies became the first partner in the NFE project last year, investing more than $2 billion for a share of 6.25%. In addition, the French energy giant signed another $1.5 billion deal in September 2022, obtaining a 9.375% participating interest in the NFS project, the second phase of the super-giant gas field’s expansion.  In his comment on the new deals with TotalEnergies, QatarEnergy chief Saad al-Kaabi said they reflected Qatar’s continued commitment to the European markets in general, and to the French market in particular, thus contributing to France’s energy security.

Significance of the French Market for Qatar