Eni SpA signed a 27-year liquefied natural gas deal with QatarEnergy, marking the Gulf nation’s third major contract with a European firm this month.
Starting in 2026, a joint venture between the Middle Eastern company and Eni will deliver as much as 1.5 billion cubic meters (one million ton) of LNG per year to a floating import terminal in Italy’s Piombino, the companies said on Monday. Earlier this month, TotalEnergies SE and Shell Plc — also investors in Qatar’s LNG expansion — signed similar contracts.
European firms are locking in some of the longest and biggest LNG agreements as the continent prepares for its second winter after Russia cut its supply of pipeline gas. The decades-long deals preferred by Qatar — which vies with the US and Australia as the world’s top LNG supplier — have become more attractive after Europe was forced to prioritize security of supply.
At the same time, they raise questions over the continent’s climate goals, with the European Union aiming for net zero emissions by 2050, as well as calling for a phase-out of most fossil fuels globally.
Qatar is rushing to find customers after investing tens of billions of dollars to increase output 64% by 2027. Its North Field East project — which Eni is a partner in — is slated to produce 32 million tons per year, while the expansion known as North Field South will bring another 16 million tons a year. Including the Eni contract, Qatar has so far committed nearly 20 million tons a year of that additional LNG capacity, or more than 40% of the volumes.
Eni, previously one of the biggest buyers of Russian piped gas, is already importing 2.9 billion cubic meters of gas per year from Qatar to Europe under a long-term contract since 2007, and the new pact further contributes to Italy’s security of supply, the company said. Agreements with Gulf nation, including investments in the joint venture, aim “to progressively increase the role of gas in Eni’s upstream production, reaching 60% by 2030,” it said.
--With assistance from Anna Shiryaevskaya.
(Updates with chart, additional details from fifth paragraph.)