The Gulf emirate’s state-owned energy corporation announced Monday that Qatar has agreed to supply Italian firm Eni with natural gas for the next 27 years, the latest in a string of large accords. QatarEnergy said Doha will supply one million tons of gas per year under the agreement, which follows an agreement with Eni for a stake in Qatar’s massive North Field gas expansion project. Following Moscow’s invasion of Ukraine last year, European nations hurried to replace lost Russian natural gas exports.
“Today, we are taking another important step in strengthening our partnership with Eni that will foster our mutual cooperation for many years to come,” Qatari Energy Minister Saad al-Kaabi said. “Together, we will continue to demonstrate commitment to the European markets in general, and to the Italian market in particular,” he added.
Qatar plans to increase its LNG output by 60 per cent or more to 126 million tonnes as part of its North Field project
Eni agreed to a contract with QatarEnergy in June last year for a 3.1 percent stake in Qatar’s North Field East project, the first phase of the Gulf emirate’s development into the world’s largest gas field, which extends into Iranian territory. Liquefied natural gas (LNG) deliveries to Italy’s Tuscany area are planned to commence in 2026. The arrangement with Eni follows a rapid sequence of historically long deals with European corporations for Qatari gas delivery. Qatar announced a 27-year contract with Britain’s Shell last week, and France’s Total announced a similar arrangement earlier this month.
Qatar plans to increase its LNG output by 60 percent or more to 126 million tonnes as part of its North Field project. Traditionally, Asia has been the main market for Qatari gas, headed by countries such as China, Japan, and South Korea. The contracts with Eni, Shell, and Total are for the same period as those signed by China National Petroleum Corporation in June and Sinopec in 2022. All have established a record for being the longest in the LNG sector. ConocoPhillips and ExxonMobil have also agreed to collaborate on the project. Qatar, along with the United States, Australia, and Russia, is one of the world’s leading LNG producers. According to QatarEnergy, the North Field contains around 10% of the world’s known natural gas reserves.
