Qatar Energy has signed a 27-year agreement with Italy’s Eni to supply liquefied natural gas (LNG) to Italy, marking the third such deal with a European nation this month.
In a statement, the state-owned company announced, “Two subsidiaries of Qatar Energy and Eni have signed a long-term sale and purchase agreement to supply up to one million tons of LNG from Qatar to Italy, starting in 2026 and spanning 27 years.” The company had previously signed similar agreements with Total Energies of France and Shell of the Netherlands.
Following the Ukraine crisis last year, European countries have sought to diversify their sources of natural gas, reducing their reliance on Russian supplies.
Commenting on the new agreement, Qatar’s Minister of State for Energy Affairs, Saad bin Sherida Al-Kaabi, stated, “Today, we take a new step in reinforcing our relationship with Eni, which will enhance our cooperation for many years to come.”
He added, “We will continue to work together to reaffirm our commitment to the European markets in general, and the Italian market in particular.”
This agreement with Eni follows a series of long-term agreements with European companies for the supply of LNG from Qatar.
Qatar Energy stated that the LNG will be delivered to FSRU (Floating Storage and Regasification Unit) Italy, located at the Italian port of Piombino.
Regasification stations are facilities that convert LNG back into natural gas suitable for direct consumption.
Last week, Qatar announced a 27-year deal with British company Shell, and earlier, a similar agreement with French energy giant Total Energies.
As part of the expansion of Qatar’s North Field, the world’s largest natural gas field, Qatar is expected to increase its production of LNG by sixty percent or more, reaching 126 million tons annually by 2027.
Traditionally, Qatar’s primary gas market has been in Asia, with countries such as China, Japan, and South Korea.
Qatar is one of the leading global producers of LNG, alongside the United States, Australia, and Russia.
Qatar Energy estimates that the North Field holds ten percent of the world’s known natural gas reserves.
Eni holds a 3.125 percent stake in the North East expansion project, which, along with the North South expansion project, will increase Qatar’s liquefaction capacity from 77 million tons annually to 126 million tons annually by 2027.
