Eni signs LNG supply deal with Merakes LNG Sellers in Indonesia
Italian energy giant Eni has signed a three-year LNG supply deal with Merakes LNG Sellers in Indonesia, starting from January 2024, it said on October 26. Under the terms of the deal, Eni will supply 0.8bn m3/year of LNG to Merakes LNG Sellers.
This deal is part of Eni's strategy to increase its LNG portfolio and diversify its LNG supply sources. Eni already has a deal with Jangkrik LNG Sellers for the supply of 1.4bn m3/year of LNG, which has been in place since 2017. Vitol recently concluded a three-year agreement to buy 0.55mn tonnes/year LNG from Merakes LNG Sellers.
Merakes field is located in the Makassar Strait and falls under the East Sepinggan production sharing contract. The Merakes field is jointly owned by Eni, Neptune Energy, and Pertamina.
“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,” it said.
Eni has recently signed a number of contracts to secure long-term LNG supplies to build up its LNG portoflio. In September, Eni signed a contract with the Marine XII joint venture in Congo for the supply of 4.6bn m3 of LNG. This weel it signed a contract with QatarEnergy for the supply of 1.5bn m3 LNG from the North Field East project.
Eni aims to progressively increase the share of gas in its overall upstream production to 60% by 2030, while also increasing the contribution of equity LNG. Eni also aims to more than double its contracted LNG volumes to over 18mn tonnes/year by 2026.