Eni’s LNG Strategy: New 0.8 bcm Agreement Fuels Growth in Key Asian Markets

Eni’s LNG Strategy: New 0.8 bcm Agreement Fuels Growth in Key Asian Markets

(IN BRIEF) Eni, a global energy company, has signed a significant LNG sales agreement with Merakes LNG Sellers for 0.8 billion cubic meters (bcm) annually, starting from January 2024 for three years. This complements their existing 1.4 bcm per year contract with Jangkrik LNG Sellers since 2017. These agreements enhance Eni’s LNG flexibility and supply diversification, strengthening its presence in growing markets in South Asia and the Far East. Eni’s integrated approach aligns with its energy transition strategy to increase the share of gas in upstream production to 60% by 2030 and double contracted LNG volumes to over 18 million tonnes per year (MTPA) by 2026. Eni’s commitment to Indonesia’s LNG portfolio is reinforced by recent discoveries and acquisitions in the region.

(PRESS RELEASE) SAN DONATO MILANESE (MILAN), 26-Oct-2023 — /EuropaWire/ —  Eni S.p.A. (BIT: ENI), an Italian multinational energy company with focus on innovation, efficiency and accessibility for all, announces that it has recently inked a significant LNG sales and purchase agreement with Merakes LNG Sellers. The agreement, covering 0.8 billion cubic meters (bcm) of LNG per year, is set to commence in January 2024 and extend over a three-year period. This new contract, in addition to the existing agreement with Jangkrik LNG Sellers for 1.4 billion cubic meters per year, established in 2017, marks another pivotal step in Eni’s LNG strategy.

Eni’s forward-looking approach to securing these additional LNG volumes enhances the company’s flexibility and diversification in LNG supplies. It also solidifies Eni’s presence in rapidly growing markets, particularly in South Asia and the Far East, where demand for clean energy sources is on the rise.

This latest contract, along with Eni’s recently signed long-term agreement with the Marine XII JV in Congo for approximately 4.5 bcm of LNG and the partnership with QatarEnergy LNG NFE (5) for up to 1.5 bcm of LNG from the North Field East project, underscores Eni’s ongoing efforts to expand and diversify its LNG portfolio. These endeavors are supported by Eni’s strong relationships with the countries in which it operates.

Eni’s integrated approach, bridging upstream developments to LNG marketing, aligns seamlessly with the company’s energy transition strategy. Eni aims to progressively increase the share of gas in overall upstream production to 60% by 2030, while also enhancing the contribution of equity LNG. The company’s ambitious goal is to more than double its contracted LNG volumes, surpassing 18 million tonnes per year (MTPA) by 2026, by leveraging the synergy between upstream and gas marketing activities.

Eni’s longstanding presence in Indonesia, dating back to 2001, has been marked by continuous investment and commitment across exploration, development, and production. Recent milestones such as the Geng North discovery, the acquisition of Chevron’s assets, and the expeditious progress of the Indonesia Deepwater Development (IDD) project have significantly reinforced Eni’s footprint in Indonesia’s Kutei basin. This strategic location is in proximity to the existing Bontang LNG facilities, underlining Eni’s strong partnership with Indonesia, a nation that continues to play a pivotal role in Eni’s LNG portfolio.

Eni remains dedicated to advancing its energy transition goals and strengthening its position in the global LNG market through innovative partnerships and strategic investments.

Media contacts:

Press Office
Tel: +39.0252031875
Tel: +39.0659822030
ufficio.stampa@eni.com

Freephone for shareholders (from Italy)
Tel: 800940924
segreteriasocietaria.azionisti@eni.com

Freephone for shareholders (from abroad)
Tel: +80011223456
investor.relations@eni.com

SOURCE: Eni S.p.A.