The state-owned QatarEnergy and Italian energy group Eni have signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) for the supply of up to one million tons per annum (MTPA) of gas from Qatar to Italy.

The LNG will be delivered to FSRU Italia, a floating storage and regasification unit, located in the port of Piombino, in Italy’s Tuscany region, QatarEnergy said in a statement on Monday.

LNG deliveries are expected to start in 2026 for a term of 27 years and will be sourced from the joint venture between QatarEnergy and Eni that holds an 3.125% share in Qatar’s massive North Field East (NFE) expansion project.

Earlier this month, QatarEnergy signed a deal with France's TotalEnergies to supply 3.5 million MTPA of LNG for 27 years.

Qatar is the world's top LNG exporter. Since the start of the war in Ukraine, Europe has been trying to firm up gas supply deals to replace the Russian pipeline gas that used to make up almost 40% of the continent's imports.

(Reporting by Brinda Darasha; editing by Seban Scaria)

(brinda.darasha@lseg.com)