Eni to boost Egyptian LNG supplies to Italy

Eni said it has signed a deal with EGAS to increase Egyptian LNG exports to Europe, and specifically to Italy.

The deal signed on Wednesday comes at a time when Italy and Europe are looking at ways to slash reliance on Russian gas supplies.

Eni also penned a deal this week with Algeria’s Sonatrach to boost gas pipeline supplies to Italy.

Under the deal in Egypt, Eni and EGAS agreed to maximize gas production and LNG exports.

The two firms are partners in the 5 mtpa Damietta liquefaction plant in Egypt. The facility started exporting LNG again in February last year following a deal between Egypt’s EGPC and EGAS, Eni, and Naturgy.

It stopped operations in 2012 due to declining domestic production, but new finds such as Eni’s giant Zohr field in the East Mediterranean allowed the partners to restart the plant and ship the first cargo in February.

Eni said in the statement on Wednesday that the new agreement, together with the Damietta deal, would provide LNG cargoes for overall volumes of up to 3 bcm in 2022 for the company’s LNG portfolio bound to Europe and Italy.

Boosted by the Damietta restart, Eni’s LNG sales rose 15 percent to 10.9 bcm in 2021.

Besides Egypt, Eni should also launch its Coral Sul FLNG in Mozambique this year.

The 3.4 mtpa unit which weighs about 220,000 tons left Samsung Heavy Industries’ Geoje yard in South Korea under tow on November 16 and arrived in Mozambique in early January.

Eni previously said it would launch production in the second half of 2022.

The company also recently joined forces with New Fortress Energy for the Congo FLNG project. This project should go online in 2023.

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