The QatarEnergy deal is the latest to be signed with several European countries.
QatarEnergy is set to supply Italy’s Eni with liquified natural gas (LNG) for 27 years under a new agreement between the two energy companies, the Qatari company announced on Monday.
The sale and purchase agreement stipulates that QatarEnergy will provide Italy with up to one million tonnes per annum (MTPA) of LNG starting from 2026. Qatar will deliver the LNG supply to FSRU Italia, a floating storage and regasification unit in Italy’s Tuscany region, QatarEnergy said in a statement.
The mega deal was signed in Italy between QatarEnergy CEO Saad Sherida Al-Kaabi and Eni’s CEO Claudio Descalzi.
“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,” Al-Kaabi, who is also Qatar’s minister of state for energy affairs, said.
Eni is among a list of companies that hold interest in Qatar’s North Field East (NFE) expansion project, boasting a total share of 3.125%.
“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% of Italy’s natural gas requirements,” Al-Kaabi added.
The QatarEnergy deal is the latest to be signed with several European countries.
Last week, QatarEnergy signed a similar deal with Shell for the 27-year supply of LNG as part of two long-term sale and purchase agreement that stipulate the provision of 3.5 mtpa of LNG to the Netherlands starting 2026.
Shell has a 6.25% share in NFE and a 9.375% share in the North Field South (NFS) projects—the two parts of the multibillion North Field Expansion project.
On 11 October, QatarEnergy and France’s TotalEnergies also signed a supply agreement under which the Gulf state would deliver 3.5 mtpa of LNG for more than 27 years.
The North Field Expansion project is set to boost Qatar’s LNG production by more than 63% by 2026, while adding 48 mtpa to the global production. The construction of the mega LNG site officially started on 3 October when Qatar’s Amir Sheikh Tamim bin Hamad Al Thani laid its foundation brick.
Last month, Al-Kaabi said that the LNG sales from the project are “going very well” and could be sold out by the end of this year.
The project has further cemented Qatar’s position as a reliable energy partner, especially last year during Europe’s energy crisis in light of Russia’s war with Ukraine.
Just weeks before the invasion, the US administration held discussions with Qatar on providing Europe with gas supply, particularly given that the Russian pipeline made up 40% of the region’s gas supply at the time.
Beyond geopolitical crises, Qatar’s expansion of LNG production falls in line with global efforts in cutting emissions, with the Gulf state promoting the gas as a green transitional fuel. The use of LNG also aligns with the Paris agreement, which aims to limit global warming through the reduction of emissions.
