QatarEnergy Secures Multi-Decade Gas Supply Contract with Italy’s Eni
DUBAI – State-owned QatarEnergy, in a progressive strategic move, has inked a deal to supply Italy’s renowned energy company, Eni, with gas for a span of 27 years. This significant pact trails closely behind similar agreements this month, including providing gas supply to the Netherlands through global energy titan, Shell, and to France by collaborating with TotalEnergies.
Deepening Qatar’s Global Energy Ties
Representatives and affiliates from both QatarEnergy and Eni convened to formalize a long-term sale and purchase agreement. The centerpiece of this deal is the supply of up to 1 million tons per annum (mtpa) of liquefied natural gas (LNG) hailing from Qatar’s extensive North Field expansion project.
The designated location for LNG delivery will be the FSRU Italia. This floating storage and regasification unit, anchored in Tuscany’s picturesque port of Piombino, is prepped to receive the energy supply starting 2026.
Eni’s Strategic Position in the QatarEnergy Landscape
Eni is not a novice when it comes to its engagement with Qatar’s energy resources. The company already boasts a 3.125% stake in the North Field East expansion. This, in conjunction with the North Field South expansion, promises to elevate Qatar’s liquefaction prowess. Estimates predict a surge in capacity to 126 mtpa by 2027, a significant leap from its current 77 mtpa.
Qatar, which already holds the coveted title of the world’s premier LNG exporter, has been on a contractual spree. Over the past two weeks, it solidified 27-year agreements to supply a combined total of 3.5 mtpa starting 2026 to both Shell and TotalEnergies. These contracts are momentous, marking Qatar’s most extensive and long-drawn European gas supply commitments.
Asia Versus Europe: The Battle for Qatari Gas
Historically, Asia – with its robust appetite for enduring sale and purchase contracts – had outstripped Europe in securing supply from QatarEnergy’s ambitious two-phase LNG output expansion. This dynamic witnessed a slew of Asian deals, including a 27-year commitment to China’s Sinopec, concluded last November for an impressive 4 mtpa. Additionally, a mirrored agreement was ratified in June with the China National Petroleum Corporation (CNPC).
However, geopolitical tensions and the need for diversified energy resources are reshaping the energy supply landscape. The European Union, in its drive for secure and stable energy supply chains, is rapidly clinching long-term contracts. This strategic shift primarily aims to diminish reliance on Russian gas, which previously dominated the supply chain, constituting nearly 40% before Moscow’s controversial invasion of Ukraine the previous year.
Germany, once the EU’s most prominent buyer of Russian gas, is recalibrating its energy strategy. The nation will now tap into 2 mtpa from 2026, leveraging a 15-year contract between QatarEnergy and global energy corporation, ConocoPhillips. This agreement was cemented in November 2022, reflecting Germany’s urgency to diversify its gas sources.
Italy and Qatar: A Growing Energy Partnership
QatarEnergy emphasized Italy’s already substantial gas consumption from its supplies. The European nation sources more than 10% of its domestic natural gas requirements from Qatari LNG shipments, specifically those directed to the Adriatic terminal.
Saad al-Kaabi, QatarEnergy’s chief, voiced his optimism and commitment towards this deepening partnership. In an official statement, he said, “Together, we will continue to demonstrate commitment to the European markets in general, and to the Italian market in particular.
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