Eni has announced that it signed a new LNG sales and purchase agreement with Merakes LNG Sellers, according to a press release from the company.
The agreement, worth 0.8 billion cubic meters (bcm), will commence in January 2024 and last for a period of three years. This deal comes in addition to Eni’s existing contract with Jangkrik LNG Sellers for 1.4 billion cubic meters per year, which has been in place since 2017.
According to Eni’ press release, the deal ensures greater flexibility and further diversification of its LNG supplies. It also strengthens the company’s presence in growing markets, particularly in South Asia and the Far East.
Besides the agreement with Merakes LNG Sellers, Eni has also signed a long-term contract with the Marine XII JV in Congo for LNG volumes of approximately 4.5 bcm.
Furthermore, Eni has entered into a contract with QatarEnergy LNG NFE (5) for up to 1.5 bcm of LNG from the North Field East project.
Eni’s integrated approach, which combines upstream developments with LNG marketing, aligns with the company’s energy transition strategy. Eni aims to increase the share of gas in its overall upstream production to 60% by 2030. This strategy also involves increasing the contribution of equity LNG. By integrating its upstream and gas marketing activities, Eni plans to more than double its contracted LNG volumes to over 18 million tons per year (mtpa) by 2026.
Eni has been operating in Indonesia since 2001, engaging in exploration, development, and production activities. The recent announcement of the Geng North discovery, along with the acquisition of Chevron’s assets and the envisaged fast-tracking of Indonesia Deepwater Development (IDD), has further strengthened Eni’s presence in Indonesia’s Kutei basin, close to the existing Bontang LNG facilities, and confirm the strong relationship with a country that continues to play a strategic role in Eni’s LNG portfolio.