With the Dubai government-owned Emirates National Oil Company (ENOC), QatarEnergy has agreed to a long-term condensate supply agreement. The 10-year sale agreement "stipulates the supply of up to 120 million barrels of condensates to ENOC Group starting from July 2023," according to the state-owned Qatari participant.
“The agreement highlights QatarEnergy’s strategy in establishing direct sales with end-users and building up strategic business relationships and cooperation,” it noted.
QatarEnergy said the “terms of the agreement allow parties to further increase the condensate volumes under the contract, as additional condensate volume is expected to be exported from Qatar once the North Field East (NFE) and North Field South (NFS) expansion projects come online".
QatarEnergy chief executive Saad Sherida Al-Kaabi said the company is “building on the historic working relationship and the trust in Qatar’s condensate exports to help further the growth and development” along with its partners.
Qatar is increasing the capacity of its North Field with the goal of producing 110 million tonnes of liquefied natural gas annually by 2027, which is a major increase from the existing nameplate capacity of 77 million tpa. According to Upstream, the development will take place over two phases and could cost Qatar up to $50 billion.
Qatar is negotiating long-term supply agreements for LNG and condensate from its NFS second LNG development phase with a number of Asian and European customers. Upstream was unable to validate the condensate production levels from the NFE and NFS production stages.