- The stock price of ExxonMobil Corp (NYSE: XOM) increased by 6.22% in the most recent trading session. This is why.
The stock price of ExxonMobil Corp (NYSE: XOM) increased by 6.22% in the most recent trading session. Investors responded positively to ExxonMobil and QatarEnergy announcing they have signed an agreement to further develop Qatar’s North Field East project, which will expand Qatar’s annual LNG capacity from 77 million tons to 110 million tons by 2026. The deal was announced at QatarEnergy’s headquarters in Doha.
With North Field East, ExxonMobil’s participation in Qatar LNG volumes is expected to increase total capacity from 52 to 60 million tons per year. And under the terms of the agreement, QatarEnergy and ExxonMobil will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest with ExxonMobil holding the remaining 25% interest. The JV will own 25% of the entire North Field East project, including four LNG trains with a combined nameplate capacity of 32 million tons per year.
The expansion of North Field East and increased LNG export capacity is one of Qatar’s key energy objectives. QatarEnergy is the operator and commenced the North Field East project in 2019. First LNG from North Field East is expected in 2026. And ExxonMobil has had a presence in Qatar since 1955 and long supported the development of the country’s LNG industry and energy sector.
The terms of the agreement are confidential.
“We are collaborating with QatarEnergy on North Field East to accelerate the production of secure, affordable and cleaner energy our world needs. ExxonMobil has a long history of working in Qatar, responsibly producing energy, and we look forward to continuing our relationship for the benefit of all of our stakeholders.”
— Darren Woods, chairman and chief executive officer for ExxonMobil
“Today, we are signing a partnership agreement with ExxonMobil, our strategic and long-term partner, with whom we have enjoyed successful and fruitful relations in Qatar and across the globe. This is primarily due to the mutual trust and confidence between both parties, and to the State of Qatar’s safe and stable investment climate. We look forward to working closely with ExxonMobil to implement this world-scale project, and to live up to our commitment to power lives with cleaner energy in every corner of the world for a better tomorrow for all.”
— Saad Sherida Al-Kaabi, president and chief executive officer of QatarEnergy
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