RIYADH: In a significant development in the energy sector, QatarEnergy and France’s TotalEnergies signed two long-term sales and purchase agreements on Wednesday to supply up to 3.5 million tons of liquefied natural gas per annum from Qatar to France.
According to a press statement, LNG will be transported ex-ship to the Fos Cavaou receiving terminal in southern France, with deliveries expected to start in 2026 for 27 years.
LNG volumes will be sourced from the two joint ventures between QatarEnergy and TotalEnergies that hold interests in Qatar’s North Field East and North Field South projects.
“These two new agreements we have signed with our partner TotalEnergies, demonstrate our continued commitment to the European markets in general, and the French market in particular, thus contributing to France’s energy security,” said Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs in a statement.
Al-Kaabi, who is also the president and CEO of QatarEnergy, added: “The state of Qatar has been supplying the French market with LNG since 2009, and the new agreements reflect the joint effort of two trusted partners, QatarEnergy and TotalEnergies, to provide reliable and credible LNG supply solutions to customers across the globe.”
The minister further noted that Qatar is committed to ensuring continued energy supplies to Europe and the rest of the world, and the country is making substantial investments in the entire gas value chain.
“Our efforts span from bolstering production capacity in Qatar to the development of the Golden Pass LNG export project in the US, in addition to our commitments in various LNG receiving terminals in Europe, including the Montoir-de-Bretagne LNG Terminal in France,” he explained.
In July, QatarEnergy reported a 154.6 billion Qatari riyals ($42.47 billion) net profit for 2022, a 58 percent rise compared to 2021, primarily driven by increased demand for LNG following Russia’s invasion of Ukraine.
The company has also recently inked a deal with UAE-based ENOC Group to supply 120 million barrels of condensate over a period that began in July 2023.
It is the world’s largest LNG producer. The company operates all oil and gas activities in Qatar, including exploration, production, refining, transport and storage.
