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Shell (SHEL), Exxon Partner in Qatar's LNG Expansion Project

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Qatar is set to take on board Shell plc (SHEL - Free Report) and ExxonMobil (XOM - Free Report) as partners for the second phase of its ambitious North Field South (“NFS”) liquefied natural gas (LNG) expansion project, per a Reuter report.

The NFS project is part of the Gulf country’s intent to consolidate its position as the world’s top LNG exporter and meet the surging fuel demand in Europe, which is hustling to find alternatives to Russian energy supplies.

The expansion plan, which consists of two phases, involves six LNG trains to enhance liquefaction capacity to 126 million tons per annum (Mtpa) by 2027 from 77 Mtpa. The first North Field East (“NFE”) phase is anticipated to add 33 Mtpa, while the NFS phase will add another 16 Mtpa.

Earlier in 2022, the Qatari government-owned energy company — QatarEnergy — inked partnership deals with TotalEnergies, Shell, Exxon, ConocoPhillips and Eni for the $29-billion NFE expansion phase. Moreover, for the second NFS phase,

QatarEnergy selected France’s TotalEnergies as the first partner last month.

Per Reuters sources, SHEL and Exxon are expected to be named as additional partners for the NFS project in the coming weeks.

Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company.

Headquartered in Irving, TX, ExxonMobil is one of the world’s largest publicly traded energy providers and chemical manufacturers and develops and applies next-generation technologies. XOM divides its operations into three main segments: Upstream (exploration & production), Downstream (refining) and Chemical (manufacturing & marketing petrochemicals).

Shell currently has a Zacks Rank #2 (Buy). Investors interested in the energy space might also look at some other top-ranked stocks — Chesapeake Energy (CHK - Free Report) and Vista Oil & Gas (VIST - Free Report) — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chesapeake’s 2022 EPS has been revised upward by about 16.5% over the past 60 days from $14.77 to $17.21.

CHK beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 24.5%.

The Zacks Consensus Estimate for Vista’s 2022 earnings is pegged at $3.14 per share, indicating an increase of 481.5% from the year-ago earnings of 54 cents.

The consensus mark for VIST’s 2022 earnings has been revised about 30.8% upward over the past 60 days.

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