For its NFE project, QP receives offers that cover double the offered equity stake

Exclusive Qatar World
The NFE project is unique in the LNG world because of its advanced environmental characters, including significant carbon capture and sequestration capacity
By Maneesh Bakshi

Qatar Petroleum has received offers for double the equity available to potential partners in the bidding process for the North Field East (NFE) project, HE Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of Qatar Petroleum, has said said.

Al-Kaabi said Qatar Petroleum (QP) was in the process of evaluating commercial offers received for participation in the largest LNG development in the world with a capacity of 32 million tons per annum of LNG.

However, it had received offers that cover double the offered equity stake. He also noted that as part of the same process, QP had received offtake commitments/sales and purchase agreements for double the 32 million tons per annum volume on offer.

These remarks were made during a Qatar Economic Forum session on ‘Energy Shifts’ in which Al-Kaabi was one of the panelists. The discussions focused on the energy transition and the underlying climate change and the goal of driving towards net zero emissions targets.

The NFE project is unique in the LNG world because of its advanced environmental characters, including significant carbon capture and sequestration capacity.

In the discussion about ongoing energy transition, Al-Kaabi said, “Our investment policy is very clear that we consider natural gas as tied at the hip with the energy transition and we consider gas to be the solution for longer term energy transition.”

He added, “We see majority of our funds are going to be invested in gas, but we are also going to invest in renewables such as solar energy here in Qatar and also worldwide.”

However, Al-Kaabi voiced concern about future rise in gas prices as he said, “While gas and LNG are important for the energy transition, there is a lack of investments that could cause a significant shortage in gas between 2025-2030, which in turn could cause a spike in the gas market.”

On carbon capture and sequestration, Al-Kaabi highlighted the fact that Qatar started decarbonizing its LNG a while ago, and that it currently captures and sequesters 2 million tons per annum of CO2, which will grow to 9 million tons by 2030.

Al-Kaabi also highlighted the fact that the energy transition needs to take into account the requirements of the developing world and those actions need to be responsible for the collective wellbeing of all of humanity.

[Picture courtesy QNA]

Leave a Reply

Your email address will not be published. Required fields are marked *