The Zhitong Finance App learned that Qatar energy company QataRenergy recently announced that it will supply up to 1 million tons/year of liquefied natural gas (LNG) to Italy's ENI (E.US). The agreement period is 27 years. Previously, the company supplied gas to the Netherlands through Shell (SHEL.US) and France through Total (TTE.US) this month, further solidifying Qatar's position as the world's top LNG exporter.
According to the agreement, QataRenergy and Eni's subsidiary will reach a long-term purchase and sale agreement for the Qatar Northern Oilfield East Expansion Project. This expansion project will increase Qatar's LNG production capacity from 77 million tons in 2027 to 126 million tons. Meanwhile, as a minor shareholder in the project, Eni will receive 3.125% of the shares.
Currently, Qatar is the world's largest LNG exporter. Within the past two weeks, it signed a 27-year agreement to supply 3.5 million tons of LNG to Shell and Total starting in 2026. This is Qatar's largest and longest gas supply agreement in Europe.
Prior to that, Asia was in high demand for long-term purchase and sale agreements, surpassing Europe in locking in the supply of QataRenergy's two-phase liquefied natural gas production expansion. Transactions in Asia include the 27-year agreement with Sinopec to supply 4 million tons of liquefied natural gas in November last year, and the signing of the same agreement with China National Petroleum Corporation in June.
The signing of this agreement indicates that Europe is actively seeking ways to replace Russian gas supplies. After the Russian-Ukrainian war, Russian gas accounted for nearly 40% of the supply. Germany, as the EU's largest buyer of Russian gas, has passed a 15-year agreement with ConocoPhillips (COP.US) to receive 2 million tons of liquefied natural gas every year starting in 2026.
QataRenergy said that more than 10% of Italy's natural gas demand has already been obtained through liquefied natural gas shipped from Qatar to the Adriatic Sea terminal. This data fully demonstrates QataRenergy's ability to meet the demand for natural gas in the European market.
Saad al-Kaabi, CEO of Qatarenergy, said in a statement: “We will continue to demonstrate our commitment to the European market in general and the Italian market in particular.” This statement has undoubtedly enhanced the long-term supply capacity of European investors to QataRenergy.