Shell joins Qatar for major LNG expansion

SHELL has become the fifth energy firm to take a stake in Qatar’s project to expand its LNG output by more than 40% to 110m t/y.

Shell has taken a 6.25% stake in the North Field Expansion project which will include four new LNG trains with a combined capacity of 32m t/y. Since June, state-owned QatarEnergy has also signed partnerships with TotalEnergies, Eni, ConocoPhillips and ExxonMobil, handing over stakes worth 25% of the entire project.

QatarEnergy said it plans to integrate carbon capture technology into the project, which is expected to start production in 2026. Alongside the LNG, the project will produce around 4,000 t/d of ethane, 260,000 bbl/d of condensate, 11,000 t/d of LPG, and 20 t/d of helium. The company says a second expansion phase could see LNG output from its North Field project increase to 126m t/y.

LNG is in high demand as countries seek to reduce their reliance on Russian gas. Qatar, the US and Australia are the world’s largest LNG producers. According to the FT, Shell is the world’s largest LNG trader. The company had a 27.5% stake in Russia’s Sakhalin-2 LNG project but following the invasion of Ukraine it said it would divest its stake. However, in late June, the Kremlin announced measures that could lead to the project being nationalised. It is estimated that Sakhalin-2 produces around 4% of the world’s LNG.