RIYADH: QatarEnergy has signed a sale and purchase agreement with Eni to supply up to 1 million tons of liquefied natural gas annually to Italy.
In a press statement, the state-run petroleum company revealed that it will deliver LNG to the energy major for 27 years beginning in 2026.
The gas will be sourced through their joint venture, which holds an interest in Qatar’s North Field East expansion project.
LNG will be delivered to FSRU Italia, a floating storage and regasification unit located in the port of Piombino in Italy’s Tuscany region.
“Today, we are taking another important step in strengthening our partnership with Eni that will foster our cooperation for many years to come,” said Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs.
Al-Kaabi, who is also the president and CEO of QatarEnergy, added: “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.”
Qatar has been one of the most prominent suppliers of LNG for Italy. 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.
Earlier this month, QatarEnergy inked another deal with French firm TotalEnergies to supply up to 3.5 million tons per annum of LNG to France for 27 years.
In a press statement, QatarEnergy revealed that LNG volumes to France will be sourced through their two joint ventures between QatarEnergy and TotalEnergies, which hold interests in Qatar’s northeastern oil fields.
Earlier this month, Japanese trading house Mitsui & Co. said it is considering buying a stake in the North Field LNG expansion project in Qatar to ensure a stable supply of LNG.
“We have always said that we would consider investing in any quality LNG projects, and the North Field is one of the projects,” a Mitsui spokesperson said without revealing further details, Reuters reported.
In July, the state-owned petroleum company revealed that it reported a net profit of 154.6 billion Qatari riyals ($42.47 billion) in 2022, a 58 percent rise compared to 2021, primarily driven by an increase in demand for LNG following Russia’s invasion of Ukraine.
