QatarEnergy has inked one other long-term deal to supply LNG for Europe as Eni SpA continues to switch Russian pure gasoline provides.
The Italian supermajor has agreed to purchase as much as 1 million tons (Mt) yearly, or the equal of about 53 Bcf/12 months, of liquefied pure gasoline for 27 years from QatarEnergy’s North Subject East (NFE) growth mission. Deliveries are anticipated to begin someday in 2026.
Cargoes are to be delivered to Snam SpA’s floating storage and regasification unit moored at Piombino on Italy’s western coast.
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Eni joined the $29 billion NFE mission final 12 months as an fairness associate together with ConocoPhillips, ExxonMobil and TotalEnergies. The North Subject initiatives, which additionally embrace North Subject South, had been sanctioned in 2021 and would in the end increase Qatar’s LNG output from 77 million tons (Mt) to about 125 Mt yearly by 2027.
QatarEnergy’s cope with Eni is the third long-term contract for provide to Europe disclosed this month. The agency beforehand introduced 27-year offers for 3.5 million metric tons/12 months (mmty) to each Whole Energies and Shell plc from the North Subject initiatives.
The offers are at the moment QatarEnergy’s largest and longest provide agreements with European corporations.
Eni at the moment holds a 0.7 Mt/12 months contract with QatarEnergy that expires in 2024, in accordance with Kpler information.
Earlier than 2022, Italy beforehand imported round 10% of its gasoline provide from Russia. Italy imported a Russian LNG spot cargo in March from Yamal LNG.
Eni was nonetheless receiving round 80% of its contracted pure gasoline provide from Russia earlier than all gasoline deliveries on the Nord Stream system ended final 12 months. Consequently, Eni’s marketed gasoline volumes, in addition to its revenues, have continued falling.
Throughout the first six months of the 12 months, Eni additionally reported that its pure gasoline gross sales plummeted by 18% year-over-year as a result of decrease gasoline demand in Italy and central Europe.
Eni has beforehand focused rising its contracted LNG portfolio from 11 million metric tons/12 months (mmty) in 2023 to 18 mmty by 2026. It plans to shift its contracts to permit 70% of contracted volumes to be delivered on a free-on-board foundation by 2026.
Eni has additionally been snapping up belongings in Africa, Asia and the Center East to bolster its exploration and manufacturing actions via the subsequent a number of many years. It goals to extend pure gasoline to 60% of its whole upstream manufacturing by 2030.
The put up QatarEnergy, Eni Ink 27-12 months LNG Deal for European LNG appeared first on Pure Gasoline Intelligence