QatarEnergy, the state-owned energy company of Qatar, has inked a significant 27-year gas supply agreement with Italy’s energy giant Eni. This latest deal comes on the heels of QatarEnergy’s recent contracts to supply the Netherlands via Shell and France through TotalEnergies, reinforcing Qatar’s status as the world’s leading liquefied natural gas (LNG) exporter. Under the terms of the long-term sale and purchase agreement, QatarEnergy and Eni will collaborate to provide up to 1 million tons per year (mtpa) of LNG from Qatar’s North Field expansion project. The LNG will be transported to the FSRU Italia, a floating storage and regasification unit located in the port of Piombino in Tuscany, with deliveries set to commence in 2026.
Eni holds a 3.125% stake in the North Field East expansion, which, in conjunction with the North Field South expansion, is set to increase Qatar’s liquefaction capacity from 77 mtpa to 126 mtpa by 2027. Qatar’s recent string of long-term supply agreements with European nations, including this collaboration with Eni, marks a substantial shift in the LNG landscape, as Europe seeks to replace Russian gas following geopolitical events. QatarEnergy has been a pivotal supplier of natural gas to Italy, already fulfilling over 10% of the country’s gas needs through Qatari LNG shipments to the Adriatic terminal. Saad al-Kaabi, QatarEnergy’s Chief, emphasized the commitment to the European markets, particularly Italy, as they continue to bolster their energy ties.