Revealed yesterday (19th June), the agreement will see Eni joining TotalEnergies, which has also recently signed a deal for 25% interest in the project.
The JV will also hold 12.5% interest in the entire project, including the 4 mega liquefied natural gas (LNG) trains with a combined capacity of 32 million tonnes per annum (MTPA).
The $28.75bn expansion will see Qatar’s LNG export capacity increasing from 77m MTPA to 110 MTPA.
“As a newcomer joining this world leading LNG project, we feel the privilege and the responsibility of being a strategic partner of choice for the State of Qatar,” commented Claudio Descalzi, CEO, Eni.
“This agreement is a significant milestone for Eni and fits our objective to diversify into cleaner and more reliable energy source in line with our decarbonisation strategy.”
In addition to hitting a milestone in its diversification strategy, the 27-year agreement is considered by Eni as a strategic move to help expand its presence in the Middle East, gaining access to the largest natural gas reserves in the world.
Production at the site is expected to begin in 2025.