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ConocoPhillips wins stake in Qatar LNG as Kaabi warns about high prices

Qatar's Minister of State for Energy Affairs and President and CEO of QatarEnergy Saad Sherida al-Kaabi (R) and Ryan Lance, CEO of American multinational corporation ConocoPhillips, attend a signing ceremony at the QatarEnergy headquarters in Doha on June 20, 2022 [KARIM JAAFAR/AFP via Getty Images]
Qatar's Minister of State for Energy Affairs and President and CEO of QatarEnergy Saad Sherida al-Kaabi (R) and Ryan Lance, CEO of American multinational corporation ConocoPhillips, attend a signing ceremony at the QatarEnergy headquarters in Doha on June 20, 2022 [KARIM JAAFAR/AFP via Getty Images]

ConocoPhillips will take part in QatarEnergy's North Field LNG expansion as the third partner, energy and commodity consultancy company, S&P Global, said.

A joint venture between QatarEnergy and ConocoPhillips will own 12.5 per cent, or half a train, in the four-train North Field East expansion project, Qatar's Energy Minister, Saad Al-Kaabi, said June 20 at a news conference in Doha.

ConocoPhillips, which has worked on Qatar LNG since 2003, joined France's TotalEnergies and Italy's Eni in the project.

Oil and gas prices have surged due to Russia's invasion of Ukraine, which has prompted many European buyers of Russian gas to seek alternatives, including from Qatar. Russia currently supplies 40 per cent of Europe's gas needs, and "it is not logical they can make up that volume in the short term," Kaabi said.

"Prices that are too high are destructive to demand, you do not want a broke customer," he said.

The US-based ConocoPhillips has a 70-year history in LNG production, and Qatar's North Field has the world's lowest cost to LNG supply.

READ: QatarEnergy signs deal with TotalEnergies for Qatari gas project

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