Eni secures 0.8 bcm LNG deal with Merakes to expand global LNG portfolio

Italian energy company Eni inked a 0.8 billion cubic meters (bcm) liquefied natural gas (LNG) sales and purchase agreement with Merakes LNG Sellers. This three-year contract, set to initiate from January 2024, is an addition to the existing agreement with Jangkrik LNG Sellers, which has been operational since 2017, supplying 1.4 billion cubic meters annually.

Strengthening Global Presence

With the addition of these new volumes, Eni aims to boost the flexibility and diversification of its LNG supplies. It solidifies Eni’s position in burgeoning markets, notably South Asia and the Far East.

Eni’s LNG Portfolio Expansion

This Merakes contract, combined with the recently secured long-term contract with Marine XII JV in Congo (4.5 bcm) and the agreement with QatarEnergy LNG NFE (5) for up to 1.5 bcm from the North Field East project, showcases Eni’s commitment to fortify its LNG portfolio. This strategy is grounded in cultivating robust relationships with countries of operation and adopting an integrated approach spanning upstream developments to LNG marketing. As quoted, “Eni’s integrated approach…is in line with the company’s energy transition strategy,” which envisions a hike in gas’s share in overall upstream production to 60% by 2030. Furthermore, Eni is determined to more than double its contracted LNG volumes, reaching over 18 million tonnes per year by 2026, thus underscoring the synergy between upstream and gas marketing endeavors.

Eni’s Operations and Influence in Indonesia

Since 2001, Eni has been operational in Indonesia, delving into exploration, development, and production. The recent revelation of the Geng North discovery, combined with the acquisition of Chevron’s assets and the anticipated fast-tracking of the Indonesia Deepwater Development (IDD), bolster Eni’s foothold in Indonesia’s Kutei basin. Positioned in proximity to the Bontang LNG facilities, this move accentuates Eni’s robust relationship with a nation that remains pivotal in shaping its LNG portfolio.