Shell has become the fifth and last international partner in QatarEnergy’s $29 billion project to enhance output at the world’s largest natural gas field.
The United Kingdom-based corporation acquired a 6.25 percent share in the North Field East project for an unknown amount, joining TotalEnergies, Eni, ConocoPhillips, and ExxonMobil.
QatarEnergy stated that the North Field expansion is the largest ever liquefied natural gas (LNG) project. It comes at a time of heightened geopolitical concerns about energy supply since the ongoing conflict in Ukraine has prompted European nations to cease utilizing Russian resources.
It is anticipated that the development will raise Qatar’s annual LNG production from the current 77 million tones to 110 million tones by 2027.
Qatar’s Energy Minister Saad Sherida al-Kaabi, who is also the president and CEO of QatarEnergy, stated, “As one of the largest participants in the LNG industry, Shell has a lot to contribute to meeting global energy demand and ensuring energy security.”
QatarEnergy says that the North Field, which stretches into Iranian territory under the Gulf, contains approximately 10 percent of the world’s known natural gas reserves.
After Europe’s energy supplies were disrupted by Russia’s invasion of Ukraine, the project’s worldwide significance has increased.
South Korea, Japan, and China have been Qatar’s primary LNG markets.
Since an energy crisis struck Europe last year, however, the Gulf state has provided the United Kingdom with more supplies and established a cooperation agreement with Germany.