Qatar Picks Exxon, Total, Shell And Conoco For Mega LNG Expansion

Qatar has chosen Exxon Mobil Corp., TotalEnergies SE, Shell, and ConocoPhillips as partners in the expansion of the world's largest liquefied natural gas (LNG) project, according to people familiar with the matter, Sabrina Valle, Marwa Rashad, and Ron Bousso reported for Reuters.

Photo Insert: The four companies are already involved in Qatar's existing LNG production and submitted bids in May 2021.

The North Field expansion will increase Qatar's LNG output by 64% by 2027, cementing Qatar's position as the world's top LNG exporter and assisting in ensuring long-term gas supply to Europe.

Qatar Energy (QE) has decided to make the final investment decision for the $30 billion North Field expansion project alone but has opened a bid to seek partners to share the financial risk.

The four companies are already involved in Qatar's existing LNG production and submitted bids in May 2021, along with newcomers Chevron Corp. and Eni of Italy. Four sources confirmed that Exxon and Total were among the winners, while another said Shell and Conoco will be involved in the project.

Total, Exxon, and ConocoPhillips all declined to comment. QE, Chevron, and Eni did not respond immediately to requests for comment. Shell said in a statement it "has bid to participate and we would be delighted to be selected."

Although a decision has been made, a formal announcement with the winners might not be made until later this month, one of the sources said. Exxon Chief Executive Darren Woods will attend an energy conference with QE later in June. QE said it will hold a press conference and a signing ceremony on June 12, without specifying the subject.

The four oil majors are expected to have around 20-25% in total of the offtake of the new project, one of the sources said - proportionally a smaller stake than their share in current projects, which ranges between 25-35%.

Although a decision has been made, a formal announcement of the winners may not take place until later this month, according to one of the sources. Exxon CEO Darren Woods will attend an energy conference with QE later this month.

QE stated that a press conference and signing ceremony will be held on June 12, but did not specify the subject.

According to one source, the four oil majors are expected to have around 20-25 percent of the total offtake of the new project - a smaller stake than their share in current projects, which ranges between 25 and 35 percent.

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