Italian energy giant Eni has boosted its liquefied natural gas portfolio, securing additional volumes from partners in its operated Merakes field offshore Indonesia.
Eni on Thursday confirmed it had signed a three-year sales and purchase agreement (SPA) for 800 million cubic metres per annum of LNG with the Merakes LNG sellers, starting in January 2024. These volumes are in addition to the company’s contract with the Jangkrik LNG sellers for 1.4 billion cubic metres per annum that has been in place since 2017.
Thanks to these new volumes, Eni said it 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.
“This contract — together with the long-term contract recently signed with the Marine XII JV in Congo for LNG volumes of approximately 4.5 Bcm, and the contract with QatarEnergy LNG NFE (5) for up to 1.5 Bcm of LNG from the North Field East project — contributes to the buildup of our LNG portfolio by leveraging strong relationships with the countries of operation,” commented Eni.
The company added that its integrated approach — that builds on the upstream developments to the LNG marketing — is in line with its 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 tpa by 2026, leveraging integration between upstream and gas marketing activities.
The Italian company has been operating in Indonesia’s upstream sector for 22 years, and it recently discovered a further 5 trillion cubic feet of gas offshore the republic’s East Kalimantan province with the Geng North wildcat.
Gas exploited from North Geng will be used as feedstock at the underutilised Bontang LNG project that currently receives volumes from offshore fields including Jangkrik and Merakes.
Updated to clarify the 0.8 Bcm of LNG is per annum.