Eni inks three-year deal for Indonesian LNG supplies

Italian energy firm Eni has signed a three-year liquefied natural gas sales and purchase agreement with Merakes LNG Sellers to secure more LNG volumes from Indonesia.

The deal is for 0.8 billion cubic meters (bcm) of LNG per year and starts from January 2024, Eni said in a statement.

Back in 2021, Eni started gas production from the Merakes project offshore Indonesia.

Gas supplies from the field will help extend the life of Pertamina’s Bontang LNG facility in East Kalimantan.

Earlier this year, a unit of energy trader Vitol also signed a three-year deal with the Merakes LNG Sellers to offtake volumes from the Bontang LNG facility.

Merakes is part of the East Sepinggan PSC, jointly owned by Eni, Neptune Energy, and Pertamina.

The Bontang LNG plant launched liquefaction operations in the 1970s and has been supplying LNG ever since, primarily to Asian markets.

Boosting LNG supplies

Besides the new deal, Eni has a contract with Jangkrik LNG Sellers for 1.4 billion cubic meters per year, in place since 2017.

“Thanks to these new volumes, Eni 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,” the firm said.

The new contract follows the long-term contract recently signed with the Marine XII JV in Congo for LNG volumes of about 4.5 bcm, and the contract with QatarEnergy for up to 1.5 bcm of LNG from the North Field East project, Eni said.

Eni said the contract contributes to the buildup of its LNG portfolio by leveraging “strong relationships” with the countries of operation.

The firm aims to more than double its contracted LNG volumes to over 18 million tonnes per year (mtoa) by 2026, leveraging integration between upstream and gas marketing activities, it added.

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