Shell, QatarEnergy Sign Long-Term LNG Agreement

Shell, QatarEnergy Sign Long-Term LNG Agreement

Shell and QatarEnergy signed a long-term LNG sale and purchase agreement (SPA) for the development of the North Field East (NFE) project in Qatar to supply up to one million tons per annum (MTPA) of LNG from Qatar to Italy’s FSRU, which is currently located in the port of Piombino in Italy’s Tuscany region and is expected to receive LNG in 2026 with a duration of 27 years.

The LNG volumes produced by the NFE project will increase Qatar’s LNG production by 45 billion cubic meters (bcm) in addition to the current 108 billion cubic meters (bcm). Eni is a partner in the 32 MTPA NFE expansion project with a 3.125% share.

“Today, we are taking another important step in strengthening our partnership with Eni that will foster our mutual cooperation for many years to come. Our partnership with Eni has borne fruitful results, including LNG deliveries through the Fluxys LNG terminal in Belgium’s Zeebrugge port and upstream exploration projects in various locations around the world. This agreement further builds on Eni’s first entry into the upstream sector in the State of Qatar through our partnership in the historic North Field East expansion project,” said H.E. Minister Al-Kaabi at the signing ceremony held in Doha in the presence of senior executives from both companies.

“Together, we will continue to demonstrate commitment to the European markets in general and to the Italian market in particular. Since 2009, Qatari LNG has been arriving at the Adriatic LNG terminal in the northern Adriatic to meet more than 10% of Italy’s natural gas requirements,” Al-Kaabi added.

The participation in the NFE project and the LNG contract are in line with Eni’s transition strategy, which aims to progressively increase the role of gas in Eni’s upstream production, reaching 60% by 2030, and increasing the contribution of equity LNG, leveraging integration between upstream and gas marketing activities, as Eni stated in a press release.

Eni has been importing in Europe 2.9 bcma from Qatar since 2007 under a long-term supply agreement.


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