Qatar to Supply Eni with Natural Gas for 27 Years in Latest Energy Deal

Qatar to Supply Eni with Natural Gas for 27 Years in Latest Energy Deal

VoM News Desk | October 23, 2023 | 01:36 PM IST | Asia, Breaking News | Follow on Google News

Qatar to Supply Eni with Natural Gas for 27 Years in Latest Energy Deal

Qatar to Supply Eni with Natural Gas for 27 Years in Latest Energy Deal

QatarEnergy, the state-owned energy company of Qatar, has entered into a significant agreement with Italian firm Eni to supply natural gas for a period of 27 years. Under this deal, Qatar will provide one million tonnes of gas annually. The agreement builds upon Eni’s participation in Qatar’s extensive North Field gas expansion project.

Response to Europe’s Energy Needs

This agreement comes in the backdrop of European nations seeking alternative sources of natural gas in the aftermath of Russia’s invasion of Ukraine, which disrupted gas deliveries from Russia. Qatar’s energy minister, Saad al-Kaabi, emphasized the strengthened partnership with Eni, highlighting their commitment to both European and Italian markets. Eni had previously secured a 3.1 percent share in Qatar’s North Field East project.

Delivery and Expansion

The delivery of liquefied natural gas (LNG) to Italy’s Tuscany region is expected to commence in 2026 as a result of this agreement. Qatar’s North Field expansion is set to significantly increase its LNG production, aiming to reach 126 million tonnes annually by 2027. While Qatar’s traditional market for natural gas has been in Asia, these long-term agreements with European firms, including Shell and Total, are part of Qatar’s broader expansion strategy in the energy sector.

Key Player in Global LNG Production

QatarEnergy estimates that the North Field holds approximately 10 percent of the world’s known natural gas reserves, solidifying Qatar’s position as one of the world’s top LNG producers alongside the United States, Australia, and Russia.

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