Italy’s energy giant Eni has signed a sales and purchase (SPA) agreement with Indonesia’s Merakes LNG Sellers to secure additional 0.8 billion cubic meters (bcm) per year of LNG.
The agreement comes into effect in January 2024 and will run for three years, in addition to the contract with Jangkrik LNG Sellers for 1.4 bcm per year in place since 2017.
Eni said that with these new volumes can ensure greater flexibility and further diversification of its LNG supplies, while strengthening its presence in growing markets such as South Asia and the Far East.
Together with the long-term deal recently signed with the Marine XII JV in Congo for LNG volumes of approximately 4.5 bcm, and the contract with QatarEnergy for up to 1.5 bcm of LNG from the North Field East project, the latest agreement contributes to the buildup of Eni’s LNG portfolio.
It is also in line with the company’s energy transition strategy , which aims to progressively increase the share of gas in overall upstream production to 60% by 2030, while also increasing the contribution of equity LNG.
Eni aims to more than double its contracted LNG volumes to over 18 million tons per year (mtpa) by 2026, leveraging integration between upstream and gas marketing activities.
“Eni has been operating in Indonesia since 2001 across exploration, development, and production. The recent announcement of the Geng North discovery, along with the acquisition of Chevron’s assets and the envisaged fast-tracking of Indonesia Deepwater Development (IDD), significantly reinforce Eni presence in Indonesia’s Kutei basin, close to the existing Bontang LNG facilities, and confirm the strong relationship with a country that continues to play a strategic role in Eni’s LNG portfolio”, the company stated.