France's Total Joins Qatar's 38 Trillion Won LNG Expansion as First Overseas Partner

Shell, ExxonMobil Also Preparing Equity Participation
Qatar Plans to Increase LNG Exports to Europe by Over 50%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Total, a major French energy company, has been selected as the first overseas partner for Qatar's liquefied natural gas (LNG) expansion project. While other major energy companies such as Shell and ExxonMobil are also competing to bid for the project, there are expectations that this expansion will help stabilize gas prices in Europe, which have surged since the Ukraine crisis.

According to Bloomberg on the 13th (local time), Total was chosen as the first overseas partner for Qatar Energy, Qatar's state-owned oil company, in its $30 billion (approximately 38 trillion KRW) LNG expansion project. Total will secure a 6.25% stake in the first phase of Qatar's LNG expansion project, the North Field East development project.

In the future, Total plans to establish a joint venture with Qatar Energy and increase its stake in the expansion project to 25%. However, Bloomberg reported that Total did not disclose the exact investment amount for the project.

The project aims to increase Qatar's LNG production capacity by more than 60%, from the current 77 million tons per year to 126 million tons by 2027. Besides Total, major global energy companies such as Shell, ExxonMobil, and ConocoPhillips are preparing to participate with significant stakes. Patrick Pouyann?, CEO of Total, stated at a press conference, "Everyone is rushing to secure LNG due to the most tragic event in Europe (the Ukraine crisis)."

Since Russia's invasion of Ukraine in February, sanctions against Russia have intensified, prompting European countries like Germany and Italy to actively engage with major natural gas producers in the Middle East and Africa to encourage increased production. European countries are pursuing expansion cooperation not only with Qatar but also with Egypt, Nigeria, and Senegal. However, African countries are reportedly struggling to increase production due to economic difficulties, civil wars, and the impact of COVID-19. The fact that major energy companies are rushing to invest in Qatar's expansion plan is analyzed as Qatar being practically the only country capable of increasing production.

Qatar plans to export most of the increased production to Europe. The Qatari government announced that it will increase the share of LNG exports to Europe by more than 50% after 2027. If the project proceeds as planned, it is expected to help stabilize gas prices in Europe, which has faced energy crisis concerns due to Russia's weaponization of resources following its invasion of Ukraine.

This content was produced with the assistance of AI translation services.