Enel Close to 20-year LNG Supply Deal with Cheniere Energy

Italy’s Enel is reportedly close to clinching a 20-year supply deal with US liquefied natural gas (LNG) producer Cheniere Energy.

The deal could be extended for a further 10-year term, according to Enel CFO Luigi Ferraris as reported by Reuters.

Spain’s Endesa signed a similar deal for 1.5 million tonnes of LNG on Wednesday. Enel Group owns 92.06% of Endesa’s share capital.

As the Ukraine crisis has spurred Eastern European countries to seek ways of shaking off reliance on Russian Gazprom, once the Eastern-bloc states are increasingly turning to the US and its liquefied natural gas resources. The two deals negotiated by Endesa and Enel indicate that Western Europe is moving in the same direction.