State-owned QatarEnergy has signed an agreement to supply liquified natural gas (LNG) to Italy’s Eni for 27 years.

Under the agreement, QatarEnergy will deliver up to one million tonnes per year (mtpa) of LNG from its North Field East (NFE) expansion project to Eni.

Eni said the LNG will be delivered to the Italia floating storage and regasification unit, which is currently located in Tuscany’s port of Piombino in Italy, effective from 2026.

The NFE project is expected to increase Qatar’s LNG production capacity by 45 billion cubic meters (bcm) from the current 108bcm.

The LNG supply contract is expected to contribute to Italy’s supply security.

Eni owns 3.125% stake in the NFE expansion project.

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“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,” Eni stated.

QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “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.”

Currently, Eni is importing 2.9bcma from Qatar as part of a long-term supply agreement signed in 2007.

Al-Kaabi added: “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.”

Recently, QatarEnergy signed 27-year deals to supply 3.5mtpa of LNG to Shell and TotalEnergies.

This article was first published on our sister site, Offshore Technology.