QatarEnergy has signed a long-term condensate supply agreement with Dubai-based ENOC Group, it said recently.
Under the 10-year sales agreement, QatarEnergy will supply up to 120 million barrels of condensate to ENOC starting in July. The deal was by QatarEnergy, for and on behalf of Qatar Petroleum for the Sale of Petroleum Products Company Ltd., and ENOC Supply & Trading LLC, a subsidiary of ENOC, QatarEnergy said in a press release.
The terms of the agreement allow the parties to further increase condensate volumes, as additional condensate volume is expected to be exported from Qatar once the North Field East (NFE) and North Field South (NFS) expansion projects become operational.
“We are pleased to sign this long-term condensate sales agreement, further strengthening QatarEnergy’s relationship with ENOC, which dates back to 2008,” said QatarEnergy President and CEO Saad Sherida Al-Kaabi. “We look forward to building on the historic working relationship and confidence in Qatar’s condensate exports to help further the growth and development our partners hope to achieve.”
“We are honored to sign this long-term agreement with QatarEnergy, to strengthen the cooperation and partnership between both organizations, which reiterates our commitment to deliver exceptional value to our customers and stakeholders,” said ENOC Group CEO Saif Humaid Al Falasi. “As a leading player in integrated energy, we recognize the role we play in contributing to the UAE’s continued success around the world.”
In May, QatarEnergy awarded a $10 billion engineering, procurement and construction contract for the NFS project to a joint venture of Technip Energies and Consolidated Contractors Company. The scope of the project includes the construction of two mega liquefied natural gas trains with a capacity of eight million tonnes per year each, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction and refining in the industrial city of Ras Laffan.
NFS, along with the NFE project, will increase Qatar’s LNG production capacity from the current 77 million tons per year to 126 million tons per year, QatarEnergy said. The company has a 75% stake in the NFS project and has signed collaboration agreements with TotalEnergies, Shell and ConocoPhillips for the remaining 25%.
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