Total Signs 27-year LNG Deal with Qatar

France’s Total has signed a 27-year agreement with Qatar for LNG supplies, according to the FT, one of the longest ever supply deals.

• Under the agreement, Qatar will supply up to 3.5m mtpa from 2026, with deliveries continuing until 2053.
• The price that Qatar will sell to Total at has not been disclosed, the FT said.
• The LNG will come from two joint ventures between Total and QatarEnergy: the North Field East and North Field South projects. Total holds a 6.25% share in the former, with a 9.37% stake in the latter. Total’s 3.5m mtpa will equate roughly to Total’s share in the output.
• Qatar is looking to cover its expanded production through long-term supply deals. Platts reported in August that Qatar was considering more flexible contract terms to entice counterparties, such as contract length shorter than the traditional 25 years.