(AFP) – Italy’s Eni on Sunday joined Qatar Energy’s $28.75 billion project to increase production at the world’s largest gas field, days after Russia cut off supplies to Italy.
Eni owns just over three percent of the North Field East project, Qatar Energy CEO said at a signing ceremony in Doha.
Qatar announced last week that France-based TotalEnergies will become its first and largest external development partner, with a 6.25% stake.
It is also planned to name an unknown number of companies.
“I am pleased to announce today that Eni has been selected as a partner in this unique strategic project,” said Saad Sherida Al Kaabi, Minister of Energy of Qatar, who is also Chairman and CEO of state-owned Qatar Energy.
Project LNG, a type of refrigerated gas that facilitates transportation, is expected to enter service in 2026. According to Qatar Energy, it will increase LNG production in Qatar from 77 million tons per year to 110 million.
The Qatari company estimates that the northern field, stretching from the bottom of the Persian Gulf to Iran, contains about 10 percent of the world’s known gas reserves.
As Western countries sought to reduce their dependence on Russia, Russia’s invasion of Ukraine added urgency to the world’s efforts to develop new energy sources.
On Friday, Eni said it will only receive 50 percent of the gas requested from Russia’s Gazprom, the third day of supply cuts. Roma accused Gazprom of spreading “lies” about the cuts.
“We can learn a lot from your leadership, your standards and your ability to adapt to very difficult conditions,” Eni CEO Claudio Descalzi told his Qatari counterpart.
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Kaabi declined to say how many more partners will be announced. “We recorded everyone. We just don’t tell you,” he said.
More announcements are expected this week. Industry sources discussed ExxonMobil, Shell and ConocoPhillips, while Bloomberg reported that Chinese companies are in talks.
Thierry Brough, a professor and an energy and climate expert at Sciences Po in Paris, said Qatar, one of the world’s largest LNG exporters, “shares commercialization risks” by bringing in partners.
It could also be a geopolitical vision,” he said.
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South Korea, Japan and China are the main markets for Qatar LNG, but after being hit by the European energy crisis last year, the Gulf state helped the UK with additional supplies and also announced a cooperation agreement in Germany.
In the past, Europe rejected long-term deals where Qatar sought power, but the war in Ukraine caused a change of attitude.
Poland, Bulgaria, Finland and the Netherlands suspended natural gas supplies from Russia for refusing to pay in rubles.
“In the short term, we see LNG demand driven by Europe as European consumers try to rid themselves of Russian gas,” Daniel Toleman, a Wood Mackenzie consulting analyst, told AFP.
But in the long run it will return to Asia and Qatar has the advantage of delivering these projects to the US and providing Asian (customers).”
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Source: Breitbart
