Exxon holds a strong hand in LNG negotiations with Qatar, says top executive
Exxon Mobil Corp. XOM.N is in a strong position to negotiate with Qatar an agreement on the North Field Expansion development plan, the world’s largest project of liquefied natural gas (LNG), vice president Neil A. Chapman said on Monday.
Qatar, which plans to increase its LNG output by 40% to 110 million tonnes per annum (mtpa) by 2026, strengthening its position as the world leading exporter of the super-chilled fuel, is expected to announce its partners for the project next year.
Exxon is hopeful it will be successful in its bid to participate in the project’s expansion with its long-term partner Qatar Petroleum, Chapman said at an online conference. But the U.S. producer could also accelerate investments in Guyana, Permian and other projects elsewhere that are also competitive in terms of cost of supply, he said.
“We have options,” Chapman said at a panel organized by the Energy Intelligence Forum.
Exxon Mobil is part of Qatar’s existing LNG production together with Royal Dutch Shell, TotalEnergies and ConocoPhillips.
Source: Reuters (Reporting by Sabrina Valle; Editing by Mark Porter)