Qatar and France have agreed on LNG supplies for a period of 27 years
Qatar has signed a contract with the French company TotalEnergies for large supplies of liquefied natural gas for 27 years. Deliveries will begin in 2026. This is reported by the Qatari energy giant QatarEnergy.
It is planned to supply 3.5 million tons of LNG to France annually under two long-term agreements. LNG volumes will come from two joint ventures, QatarEnergy and TotalEnergies, which own stakes in Qatar's North Field East (NFE) and North Field South (NFS) projects.
"These two new agreements that we have signed with our partner TotalEnergies demonstrate our continued commitment to European markets in general and the French market in particular, thereby contributing to France's energy security," said Saad Sherida Al–Kaabi, Minister of Energy and CEO of QatarEnergy.
According to ICIS LNG analyst Alex Frawley, in 2022 France became the fourth largest importer of LNG in the world with a total volume of purchases reaching 26 million tons, behind Japan, China and South Korea. The new agreement will change the structure of LNG supplies to France, as Qatar's share will increase. Last year, France imported only 6% of supercooled fuel from Qatar, while 45% came from the United States.
Qatar's multibillion-dollar North Field expansion project is the largest of its kind and spearheads the country's drive to dominate LNG supplies. Qatar, already a well-known global LNG exporter, has set an ambitious goal to ensure a 40% share of global LNG production by 2029, confirming its status as an energy power on the world stage.
Earlier, Qatar has already concluded a long-term agreement for 27 years with China, China National Petroleum Corp. As a leading LNG exporter, Qatar depends on long-term contracts to support its extensive expansion of LNG production.
