QatarEnergy pens long-term LNG sale & purchase deal with Eni

By Shilpa Annie Joseph, Official Reporter
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QatarEnergy and Eni sign deal
Officials during the signing ceremony | Courtesy: QatarEnergy

Affiliates of QatarEnergy and Eni have signed a long-term LNG sale and purchase agreement (SPA) for the supply of up to one million tons per annum (MTPA) of LNG from Qatar to Italy.

Under the agreement, the LNG will be delivered to FSRU Italia, a floating storage and regasification unit, located in the port of Piombino, in Italy’s Tuscany region.

This agreement strengthens the partnership between Eni and QatarEnergy, and it is a further step in the development of Eni’s integrated global LNG portfolio.

Saad Sherida Al-Kaabi_QatarEnergy_Shell LNG supply deal
Saad Sherida Al-Kaabi
Qatar Minister of State for Energy Affairs
President & CEO – QatarEnergy

“Today, we are taking another important step in strengthening our partnership with Eni that will foster our mutual cooperation for many years to come. Our partnership with Eni has borne fruitful results including LNG deliveries through the Fluxys LNG terminal in Belgium’s Zeebrugge port and upstream exploration projects in various locations around the world. This agreement further builds on Eni’s first entry in the upstream sector in the State of Qatar through our partnership in the historic North Field East expansion project.”

“Together, we will continue to demonstrate commitment to the European markets in general, and to the Italian market in particular. Since 2009, Qatari LNG has been arriving at the Adriatic LNG terminal in the northern Adriatic to meet more than 10 percent of Italy’s natural gas requirements,” Mr. Al-Kaabi added.

According to the company statement, the LNG volumes produced by the NFE project will increase Qatar’s LNG production by 45 bcm in addition to the current 108 bcm. The LNG supply contract will contribute to Italy’s security of supply through the diversification of its supply sources. Eni is already importing in Europe 2.9 bcma from Qatar since 2007 under a long-term supply agreement.

LNG deliveries are expected to start in 2026 for a term of 27 years and will be sourced from the joint venture between QatarEnergy and Eni, which holds an interest in Qatar’s North Field East (NFE) expansion project. Eni is a partner in the 32 MTPA NFE expansion project with a 3.125 percent share.

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