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Eni to join Exxon, Total, Shell, Conoco in Qatar’s mega-LNG expansion

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© Reuters. FILE PHOTO – The Eni logo is displayed at an Italian gas station, Rome (Italy), September 30, 2018. REUTERS/Alessandro Bianchi/File Photo

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Ron Bousso. Sabrina Valle. Marwa Rahhad

HOUSTON (Reuters). Eni (an Italian producer) has been chosen by Qatar to join the nearly $30 billion expansion project for the world’s biggest liquefied LNG (LNG) plant, sources familiar with the matter stated on Wednesday.

Exxon Mobil Corp (NYSE :), TotalEnergies SE Shell (LON :), ConocoPhillips NYSE :, Eni and ConocoPhillips will all participate in North Field expansion. This will increase Qatar’s status as the top LNG exporter worldwide and ensure long-term supply to Europe, as Europe searches for alternatives to Russia’s natural gas.

U.S. Oil Producer Chevron Corp (NYSE) has actively been looking for ways to grow its LNG business but has yet not received a share in the project’s development, according to one person.

Chevron declined comment from Exxon and Total as well as ConocoPhillips. Shell claimed in a statement, “Shell has bid to participate” and that they would love to be selected.

Qatar Energy, a state-owned company owned by Qatar (QE), said that it would hold a press conference on June 12 and host a signing ceremony. However, the topic was not specified. Darren Woods (Exxon chief executive) will attend an Energy Conference with Qatar Energy later in June when a formal announcement might be made.

Sources said Total, Shell, Exxon and Shell will each receive around 20-25% from the new project’s offtake. Another source said that they would likely each get one offtake, while Eni and Conoco will share the fourth. According to this source, QE is open to selling a smaller stake to Chinese partners.

The North Field Expansion (NFE) plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027. The expansion of North Field East was won by four oil majors. Two additional trains from the North Field East expansion will make up part of the North Field South second phase.

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