Tuesday, September 26, 2023
28 C
Brunei Town
- Advertisement -

Italy’s Eni joins giant Qatar gas project after Russian cuts

DOHA (AFP) – Italian company Eni yesterday joined Qatar Energy’s project to expand production from the world’s biggest natural gas field, days after Russia slashed supplies to Italy.

Eni will own a stake of just over three per cent in the USD28 billion North Field East project, Qatar Energy’s CEO said at a signing ceremony in Doha. Qatar announced France’s TotalEnergies as its first, and largest, foreign partner on the development last week, with a 6.25 per cent share.

More companies are set to be named.

“Today I’m pleased… to announce the selection of Eni as a partner in this unique strategic project,” said Energy Minister Saad Sherida al-Kaabi, who is also president and CEO of state-owned Qatar Energy.

The project’s liquefied natural gas (LNG) – the cooled form of gas that makes it easier to transport- is expected to come on line in 2026.

Qatar’s Minister of State for Energy Affairs and President and CEO of Qatar Energy Saad Sherida al-Kaabi shakes the hand of CEO of Italian multinational oil and gas company ENI Claudio Descalzi during the signing ceremony. PHOTO: AFP

It will help Qatar increase its LNG production by more than 60 per cent by 2027, TotalEnergies chief executive Patrick Pouyanne told AFP last week.

Russia’s invasion of Ukraine has injected urgency into efforts around the world to develop new energy sources as Western countries try to reduce their reliance on Russia.

On Friday, Eni said it would receive only 50 per cent of the gas requested from Russia’s Gazprom, the third day running of reduced supplies. Rome has accused Gazprom of peddling “lies” over the cuts.

“We have a lot of things to learn from your leadership and also from your standards and from your ability to adapt to very difficult circumstances,” Eni CEO Claudio Descalzi told his Qatari counterpart.

Qatar Energy estimates that the North Field, which extends under the Gulf sea into Iranian territory, holds about 10 per cent of the world’s known gas reserves. Kaabi refused to divulge how many more partners will be announced.

Industry sources have discussed ExxonMobil, Shell and ConocoPhillips, while Bloomberg reported this week that Chinese companies were in talks.

- Advertisement -

Latest article