French energy giant TotalEnergies on Saturday signed a 1.5-billion US dollar agreement with its Qatari counterpart to help shore up medium-term gas supplies to Europe, reports DW.
Europe is racing to find new energy sources to wean itself off Russian gas in the wake of the Ukraine war.
German Chancellor Ola Scholz is on a visit to the Gulf this weekend, including Qatar, with energy security high on the agenda.
The head of QatarEnergy, Saad Sherida al-Kaabi, said TotalEnergies would take a 9.375% stake in the North Field South project — part of the world's largest gas field. The Gulf state has said foreign firms can own up to a 25% stake in the project.
Al-Kaabi said the French giant would also help to finance the extraction of gas from North Field South, and would take on an "enhanced strategic" role in Qatar's gas expansion.
Liquified natural gas (LNG) from the field is expected to start coming online in 2026.
TotalEnergies Chief Executive Patrick Pouyanne, who traveled to Doha for the signing, said the deal came at a "perfect time" to help resolve Europe's energy crisis.
Russia has cut gas supplies to Europe in retaliation for sanctions over the Ukraine war, sparking fears the continent could see electricity and heating shortages this winter.