MOSCOW (MRC) -- QatarEnergy has selected Eni as a new international partner in the North Field East (NFE) expansion project, said the company.
The Minister of State for Energy Affairs, President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, and Eni CEO, Claudio Descalzi signed a partnership agreement for a new joint venture company during the official ceremony on Sunday.
QatarEnergy will hold a 75% interest while Eni will hold the remaining 25% interest, the company said.
The joint venture will hold a 12.5% interest in the entire NFE project, including four mega LNG trains with a combined capacity of 32 million tons per annum (MTPA).
The NFE project will expand Qatar’s LNG export capacity from the current 77 MTPA to 110 MTPA. 'A $28.75 billion investment, NFE is expected to start production before the end of 2025 and will deploy state-of-the-art technologies to minimize overall carbon footprint, including carbon capture and sequestration,' Eni announced.
The agreement marks the completion of a competitive process that started in 2019 and which will run for 27 years.
The deal is seen as a strategic move for Eni, expanding its presence in the Middle East while gaining access to a world-leading LNG producer and detaining some of the largest natural gas reserves in the world.
We remind, Eni informs that it has acquired the company Export LNG Ltd, which owns the Tango FLNG floating liquefaction facility, from Exmar group. The facility will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources. The Tango FLNG, built in 2017, has a treatment capacity of approximately 3 million standard cubic meters/day and an LNG production capacity of approximately 0.6 million tons per year (about 1 billion standard cubic meters/year). The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favour the development and enhancement of Eni's equity gas by accelerating production start-up time.