Enel Signs LNG Supply Contracts from Shale with Cheniere Energy
Italy’s Enel signed two LNG supply contracts with US-based Cheniere Energy, for gas sourced from shale fields, for a total of 3 billion cubic metres a year, of which almost one third is for the Italian market.
‘The Enel Group has signed two 20-year contracts with the US company Cheniere Energy for the supply of LNG (liquefied natural gas) from shale gas fields in the United States,' reads a note released on Tuesday.
According to the company, the two contracts will increase diversification and flexibility of its portfolio ‘for the coming years.’
Both contracts have a term of 20 years, with an option for a further 10 years, with the agreements taking force as from the first deliveries, which are expected to begin in 2018.
'The gas will be supplied as LNG, on FOB basis, therefore with full flexibility of destination, at the Corpus Christi terminal which Cheniere Energy is building in Quinta Bay, on the Texas coast, an area that is closely integrated with the country's main gas pipelines,’ adds the communiqué.
Also on Tuesday, another Italian company signed a contract for the expansion of Eni-controlled Versalis plant in Ferrara.
‘The project encompasses the construction of a fourth production line to operate alongside the three existing lines, in addition to increasing their production capacity and upgrading the plant's auxiliary systems,’ reads another press release, explaning the E&C onshore engineering, procurement and construction contract.