Qatar signs 27-year LNG supply deal with France

DOHA, October 12, 2023 – QatarEnergy and French energy giant TotalEnergies have signed sale and purchase agreements to deliver up to 3.5 million tonnes per year of LNG from Qatar to France, the Qatari NOC announced on Wednesday.

Under the agreements, LNG will be delivered to the Fos Cavaou LNG terminal in southern France.

Deliveries are expected to begin in 2026 for a period of 27 years.

The two deals are signed with separate joint ventures between QatarEnergy and TotalEnergies that hold stake in Qatar’s North Field East and North Field South developments.

“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,” said Saad Sherida Al Kaabi, president and CEO of QatarEnergy and Qatar’s minister of state for energy affairs.

TotalEnergies holds a 6.25% stake in the North Field East project and a 9.375% stake in the North Field South project.

Qatar expects to raise LNG production capacity through its two-phase expansion plan from 77 million tonnes per year to 126 million tonnes per year by 2027.

Qatar’s Minister of State for Energy Affairs recently said the country is on the path to take on 40% of global LNG output by 2029.

Qatar’s North Field is located in the northeast of the country’s peninsula. It is the world’s largest gas field and contains around 10% of the globe’s known gas reserves.

QatarEnergy held the ground-breaking ceremony for its giant North Field expansion project earlier in October.

Cost of the LNG supply contracts were not disclosed.

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