Qatar Inks 27-Year Deal To Supply France's Totalenergies With Natural Gas

QatarEnergy, the state energy company of Qatar, has announced an agreement to supply France's TotalEnergies with natural gas over the next 27 years. Under this substantial deal, Qatar will provide 3.5 million tonnes of gas annually. This arrangement builds upon previous agreements between Qatar and TotalEnergies for a stake in the Gulf state's expansive North Field gas project. The deal reflects Qatar's commitment to securing its position as a reliable supplier to European markets, with a particular emphasis on the French energy market. QatarEnergy's announcement was met with enthusiasm from Qatari Energy Minister Saad Al-Kaabi, who affirmed their commitment to France's energy security. Last September, TotalEnergies entered into a $1.5 billion agreement with QatarEnergy, acquiring a 9.3 percent stake in Qatar's North Field South project, the second phase of the field's expansion. In June 2022, the French energy giant had already become the first partner in the initial expansion phase, North Field East, investing over $2 billion for a 6.25 percent share. The gas deliveries to southern France are anticipated to commence in 2026, enhancing the energy security of the region. Saad Al-Kaabi, who also serves as the chief of QatarEnergy, emphasized their unwavering commitment to providing stable energy supplies to Europe and the global market. This commitment is reinforced by significant and ongoing investments across the entire gas value chain. The agreement not only strengthens energy ties between Qatar and France but also demonstrates the strategic importance of Qatar's natural gas reserves and its role as a key player in the global energy landscape.