QatarEnergy and Eni ink long-term LNG deal for Italian supply

QatarEnergy affiliates and Eni have solidified their commitment with a long-term LNG sale and purchase agreement, aiming to transport up to one million tons annually from Qatar to Italy. Valued strategically, this deal is expected to influence the European energy landscape for almost three decades.

FSRU Italia: The Tuscany-based Receiving End

The crux of this agreement centres around FSRU Italia, the designated floating storage and regasification unit stationed in Italy’s Piombino port, Tuscany region. Beginning in 2026, the contracted LNG deliveries are slated for a span of 27 years, with the source being the joint venture between QatarEnergy and Eni. This venture currently holds stakes in Qatar’s prominent North Field East (NFE) expansion project.

From the Heart of Doha: The Signing Ceremony

In a ceremonious event hosted in Doha, the SPA was officiated by Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and QatarEnergy’s President and CEO, alongside Claudio Descalzi, the reigning CEO of Eni. Key leadership figures from both companies marked their esteemed presence.

Addressing the gathering, Minister Al-Kaabi remarked, “Today signifies an enhancement of our enduring alliance with Eni. This affiliation has previously manifested in initiatives such as LNG deliveries via Belgium’s Zeebrugge port and global exploration projects. Eni’s inaugural upstream venture in Qatar via our North Field East project has further fortified our rapport.” He further noted the longstanding dedication to European, especially Italian markets, with Qatari LNG fulfilling over 10% of Italy’s gas necessities since 2009.

Eni’s Stake in the NFE Project

It’s noteworthy that Eni has anchored itself in the expansive 32 MTPA NFE project, claiming a 3.125% share, setting the stage for continued collaboration in the energy domain.