Qatar to supply UAE's ENOC with 120 mil barrels of condensate over 10 years starting in July

QatarEnergy announced July 10 an agreement to supply the UAE's ENOC Group with 120 million barrels of condensate over 10 years starting in July.

The agreement was signed by QatarEnergy, on behalf of Qatar Petroleum for the Sale of Petroleum Products Company Ltd., and by ENOC Supply & Trading LLC, a subsidiary of ENOC, QatarEnergy said in a statement.

The agreement allows for an increase beyond 120 million barrels of condensate as Qatar expects to increase condensates exports once the North Field East and North Field South LNG expansion projects come online, QatarEnergy said.

The North Field Expansion includes six LNG trains that will ramp up Qatar's liquefaction capacity from 77 million mt/year to 126 million mt/year in two phases by 2027, with production starting in 2026.

When complete it will make Qatar the leading exporter of LNG. The four-train part of the expansion will not only boost LNG production capacity by 32.6 million mt/year, but it will also mean 1.4 million boe/d of increased production capacity of ethane, LPG, condensates and helium, Kaabi told reporters in June 2022.

QatarEnergy has worked with ENOC since 2008, Qatar Energy Minister Saad al-Kaabi said in the statement. However, Riyadh, the UAE, Bahrain and Egypt severed ties with Doha in June 2017. The three Gulf states, along with Egypt, accused Qatar of alleged support of terrorism and Iran, among other charges, which Doha denied. After the blockade ended in early 2021, Qatar Petroleum shipped 712,000 barrels of condensate to ENOC's Dubai refinery in March that year, the first commercial energy trade since the end of the blockade, according to data from Kpler at the time. Throughout the blockade, Qatar kept the natural gas taps to the UAE open, with flows through the Dolphin pipeline averaging 1.8-2 Bcf/day and meeting about 20% of the UAE's gas demand, according to S&P Global Commodity Insights data at the time.

"We look forward to building on the historic working relationship and the trust in Qatar's condensate exports to help further the growth and development our partners hope to achieve," Kaabi said in the statement.

ENOC Group's CEO Saif Humaid al Falasi noted in the statement that ENOC works with government entities around the globe.