Technip Energies and Chiyoda Awarded a Major LNG Contract for the North Field East Project in Qatar

Rhea-AI Summary

TechnipFMC (NYSE: FTI) announced that its joint venture, CTJV, received a major EPCC contract from Qatar Petroleum for the North Field East Project. This contract includes the delivery of four LNG mega trains, each capable of producing 8 Mtpa. The project aims for a significant reduction in greenhouse gas emissions and will increase Qatar's LNG production from 77 Mtpa to 110 Mtpa. Arnaud Pieton, President of Technip Energies, emphasized the project's importance for low carbon LNG and energy transition. A major contract is defined as exceeding $1 billion.

Positive

• Awarded major EPCC contract valued over $1 billion by Qatar Petroleum.
• Increased LNG production capacity from Qatar by approximately 33 Mtpa.
• Includes significant CO2 capture to reduce greenhouse gas emissions by over 25%.

Negative

• None.

TechnipFMC (NYSE:FTI) (PARIS:FTI) (ISIN:GB00BDSFG982) is pleased to announce that CTJV, a joint venture between Chiyoda Corporation (“Chiyoda”) and Technip Energies, has been awarded a major⁽¹⁾ Engineering, Procurement, Construction and Commissioning (“EPCC”) contract by Qatar Petroleum for the onshore facilities of the North Field East Project (“NFE”).

This award will cover the delivery of 4 mega trains, each with a capacity of 8 million tons per annum (“Mtpa”) of Liquefied Natural Gas (“LNG”), and associated utility facilities. It will include a large CO2 Carbon Capture and Sequestration facility, leading to more than 25% reduction of Green House Gas emissions when compared to similar LNG facilities.

The new facilities will receive approximately 6 billion standard cubic feet per day of feed gas from the Eastern sector of Qatar’s North Field, which is the largest non-associated gas field in the world. The expansion project will produce approximately 33 Mtpa of additional LNG, increasing Qatar’s total production from 77 to 110 Mtpa.

Arnaud Pieton, President Technip Energies, commented: “We are extremely honored to have been awarded by Qatar Petroleum this prestigious mega LNG project along with our long-time partner, Chiyoda. It demonstrates the continuity and the strength of our joint venture after the successful delivery of the 6 existing mega LNG trains. This award reflects Technip Energies’ ability to integrate technologies towards low carbon LNG and supports our vision to accelerate the energy transition journey.”

Technip Energies is a strong player in Qatar, a strategic country for the Company, with a local presence since 1986.

(1) For TechnipFMC, a “major” contract is over $1.0 billion.

Important Information for Investors and Securityholders

Forward-Looking Statement

This release contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Words such as “expect,” “plan,” “intend,” “would,” “will,” and similar expressions are intended to identify forward-looking statements, which are generally not historical in nature, and include any statements with respect to the potential separation of the Company into TechnipFMC and Technip Energies, the expected financial and operational results of TechnipFMC and Technip Energies after the potential separation and expectations regarding TechnipFMC’s and Technip Energies’ respective capital structures, businesses or organizations after the potential separation. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from TechnipFMC's historical experience and TechnipFMC's present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, please see TechnipFMC's risk factors set forth in TechnipFMC's filings with the U.S. Securities and Exchange Commission, which include TechnipFMC's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, TechnipFMC's filings with the Autorité des marchés financiers or the U.K. Financial Conduct Authority, as well as the following:

• risks associated with disease outbreaks and other public health issues, including the coronavirus disease 2019 (“COVID-19”), their impact on the global economy and the business of TechnipFMC's company, customers, suppliers and other partners, changes in, and the administration of, treaties, laws, and regulations, including in response to such issues and the potential for such issues to exacerbate other risks TechnipFMC faces, including those related to the factors listed or referenced below;
• risks associated with the impact or terms of the potential separation;
• risks associated with the benefits and costs of the potential separation, including the risk that the expected benefits of the potential separation will not be realized within the expected time frame, in full or at all;
• risks that the conditions to the potential separation, including regulatory approvals, will not be satisfied and/or that the potential separation will not be completed within the expected time frame, on the expected terms or at all;
• the expected tax treatment of the potential separation, including as to shareholders in the United States or other countries;
• risks associated with the sale by TechnipFMC of shares of Technip Energies to Bpifrance, including whether the conditions to closing will be satisfied;
• changes in the shareholder bases of the Company, TechnipFMC and Technip Energies, and volatility in the market prices of their respective shares, including the risk of fluctuations in the market price of Technip Energies’ shares as a result of substantial sales by TechnipFMC of its interest in Technip Energies;
• risks associated with any financing transactions undertaken in connection with the potential separation;
• the impact of the potential separation on TechnipFMC's businesses and the risk that the potential separation may be more difficult, time-consuming or costly than expected, including the impact on TechnipFMC's resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, governmental authorities, suppliers, employees and other business counterparties;
• unanticipated changes relating to competitive factors in TechnipFMC's industry;
• TechnipFMC's ability to timely deliver TechnipFMC's backlog and its effect on TechnipFMC's future sales, profitability, and TechnipFMC's relationships with TechnipFMC's customers;
• TechnipFMC's ability to hire and retain key personnel;
• U.S. and international laws and regulations, including existing or future environmental or trade/tariff regulations, that may increase TechnipFMC's costs, limit the demand for TechnipFMC's products and services or restrict TechnipFMC's operations;
• disruptions in the political, regulatory, economic and social conditions of the countries in which TechnipFMC conducts business; and
• downgrade in the ratings of TechnipFMC's debt could restrict TechnipFMC's ability to access the debt capital markets.

TechnipFMC cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. TechnipFMC undertakes no obligation to publicly update or revise any of its forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

Disclaimers

This press release is intended for informational purposes only for the shareholders of TechnipFMC, the majority of whom reside in the United States, the United Kingdom and Europe. This press release does not constitute a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017 (the “Prospectus Regulation”), and Technip Energies’ shares will be distributed in circumstances that do not constitute “an offer to the public” within the meaning of the Prospectus Regulation. This press release is not intended for distribution in jurisdictions that require prior regulatory review and authorization to distribute a press release of this nature.

The joint equity capital markets advisors are acting exclusively for TechnipFMC and no one else in connection with the planned spin-off of the majority stake of TechnipFMC’s Technip Energies business segment and will not regard any other person as their respective clients and will not be responsible to anyone other than TechnipFMC for providing the protections afforded to their respective clients in connection with any distribution of Technip Energies shares or otherwise, nor for providing any advice in relation to the distribution of Technip Energies shares, the content of this press release or any transaction, arrangement or other matter referred to herein.

About Technip Energies (“SpinCo”)

With approximately 15,000 employees, Technip Energies is one of the largest engineering and technology companies globally, with leadership positions in LNG, hydrogen and ethylene as well as growing market positions in sustainable chemistry and CO2 management. In addition, the new company will benefit from its robust project delivery model and extensive technology, products and services offering. The Company would comprise the Technip Energies segment, including Genesis – a leader in advisory services and front-end engineering.

About TechnipFMC (“RemainCo”)

With approximately 21,000 employees, TechnipFMC would be the largest diversified pure play in the industry. The Company’s role will be to support clients in the delivery of unique, integrated production solutions. TechnipFMC will continue to transform the industry through its pioneering integrated delivery model – iEPCI™, technology leadership and digital innovation.

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FAQ

What is the significance of TechnipFMC's recent contract with Qatar Petroleum for FTI?

TechnipFMC's contract with Qatar Petroleum for the North Field East Project is significant as it exceeds $1 billion and will boost LNG production capacity in Qatar.

How much LNG will be produced under the new contract awarded to TechnipFMC in Qatar?

The contract will facilitate the production of approximately 33 million tons per annum (Mtpa) of additional LNG.

What role do the new facilities play in reducing greenhouse gas emissions?

The new facilities will feature a large CO2 Carbon Capture and Sequestration facility, achieving over a 25% reduction in greenhouse gas emissions compared to similar LNG facilities.