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Released November 01, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Three of Europe's leading oil and gas companies have agreed separate long-term deals with Qatar for the supply of liquefied natural gas (LNG) as the region continues to replace Russian gas.
Italian energy group Eni (NYSE:E) (Rome), Shell Plc (NYSE:SHEL) (London, England) and France's TotalEnergies SE (NYSE:TTE) (Courbevoie) have all signed 27-year deals with Qatar's state-owned energy giant QatarEnergy (Doha, Qatar). All three companies hold shares in various North Field Expansion projects in Qatar that are under development. Last year, the European Commission vowed to get rid of Russian gas imports following its invasion of neighboring Ukraine. It plans to spend 10 billion (US$11 billion) to create new gas infrastructure, split across existing and new pipelines as well as support for newer facilities needed for the importation, storage and transportation of LNG.
Eni's deal continues its longstanding relationship with Qatar and will see up to 1 million tons per annum (mtpa) of LNG delivered to its floating storage and regasification unit (FSRU) Italia located in the port of Piombiono, in the Tuscany region of Italy. The deal forms part of its joint venture with QatarEnergy for the development of the North Field East (NFE) project in Qatar 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 Bcm. Eni said that the LNG supply contract will contribute to Italy's security of supply through the diversification of its supply sources. The company has been importing 2.9 Bcm per annum into Europe from Qatar since 2007. Eni has a 3.1% share in NFE.
"Together, we will continue to demonstrate commitment to the European markets in general, and to the Italian market in particular," said Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and president and chief executive officer, QatarEnergy. "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 in the upstream sector in the State of Qatar through our partnership in the historic North Field East expansion project."
Similar deals have been inked by Shell and TotalEnergies. Shell has agreed to take 3.5 mtpa of LNG that will be delivered to the Gate LNG terminal, located in the port of Rotterdam starting in 2026, for a term of 27 years. The LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell, the North Field East (NFE) and North Field South (NFS) expansion projects. Shell holds 6.25% share in the 32 mtpa NFE project and a 9.375% share in the 16 mtpa NFS project. Qatar is the largest global exporter of liquefied natural gas (LNG). Brought onstream in 1991, the North Field is claimed to be the biggest non-associated natural gas field in the world. Both of the North Field Expansion projects involve the development of six mega LNG trains which will boost Qatar's liquefaction capacity from 77 mtpa to 126 mtpa by 2027--a jump of 64%.
Earlier this month Qatar sealed a deal with TotalEnergies which will see the supply of up to 3.5 mtpa of LNG to France, delivered ex-ship to the Fos Cavaou LNG receiving terminal in southern France, with deliveries expected to start in 2026 for a term of 27 years. Like Shell, the LNG will be sourced from the NFE and NFS extension projects. TotalEnergies holds the exact same shares in both projects as Shell.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Italian energy group Eni (NYSE:E) (Rome), Shell Plc (NYSE:SHEL) (London, England) and France's TotalEnergies SE (NYSE:TTE) (Courbevoie) have all signed 27-year deals with Qatar's state-owned energy giant QatarEnergy (Doha, Qatar). All three companies hold shares in various North Field Expansion projects in Qatar that are under development. Last year, the European Commission vowed to get rid of Russian gas imports following its invasion of neighboring Ukraine. It plans to spend 10 billion (US$11 billion) to create new gas infrastructure, split across existing and new pipelines as well as support for newer facilities needed for the importation, storage and transportation of LNG.
Eni's deal continues its longstanding relationship with Qatar and will see up to 1 million tons per annum (mtpa) of LNG delivered to its floating storage and regasification unit (FSRU) Italia located in the port of Piombiono, in the Tuscany region of Italy. The deal forms part of its joint venture with QatarEnergy for the development of the North Field East (NFE) project in Qatar 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 Bcm. Eni said that the LNG supply contract will contribute to Italy's security of supply through the diversification of its supply sources. The company has been importing 2.9 Bcm per annum into Europe from Qatar since 2007. Eni has a 3.1% share in NFE.
"Together, we will continue to demonstrate commitment to the European markets in general, and to the Italian market in particular," said Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and president and chief executive officer, QatarEnergy. "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 in the upstream sector in the State of Qatar through our partnership in the historic North Field East expansion project."
Similar deals have been inked by Shell and TotalEnergies. Shell has agreed to take 3.5 mtpa of LNG that will be delivered to the Gate LNG terminal, located in the port of Rotterdam starting in 2026, for a term of 27 years. The LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell, the North Field East (NFE) and North Field South (NFS) expansion projects. Shell holds 6.25% share in the 32 mtpa NFE project and a 9.375% share in the 16 mtpa NFS project. Qatar is the largest global exporter of liquefied natural gas (LNG). Brought onstream in 1991, the North Field is claimed to be the biggest non-associated natural gas field in the world. Both of the North Field Expansion projects involve the development of six mega LNG trains which will boost Qatar's liquefaction capacity from 77 mtpa to 126 mtpa by 2027--a jump of 64%.
Earlier this month Qatar sealed a deal with TotalEnergies which will see the supply of up to 3.5 mtpa of LNG to France, delivered ex-ship to the Fos Cavaou LNG receiving terminal in southern France, with deliveries expected to start in 2026 for a term of 27 years. Like Shell, the LNG will be sourced from the NFE and NFS extension projects. TotalEnergies holds the exact same shares in both projects as Shell.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
