Eni executive: Italy's Eni is in talks with Japan about LNG supply

Eni, the Italian energy company, is in discussions with Japan about supplying it with liquefied gas (LNG), Cristian Signoretto told reporters at a Sunday conference.

Signoretto stated that Eni already deals with Japanese buyers in a short-term capacity and would like to extend that collaboration to a longer-term level. Eni also plans to increase LNG volumes on the market, including those from Indonesia.

Eni intends to increase its LNG portfolio by 18 million tonnes per annum by 2027. He added that if Japan offers the opportunity, Eni would be willing to dedicate a part of this to Japan.

Signoretto stated that it was too early to comment on the specifics of these discussions, such as whether Eni will insist on destination clauses. These are contractual obligations for the buyer to not resell gas to third parties.

Japanese buyers have been increasingly demanding shorter-term deals without destination clauses. This allows them to be flexible, and to also resell LNG.

Signoretto did not provide any details, but said that flexibility would be discussed. (Reporting and editing by William Mallard, Christian Schmollinger and Katya Golubkova)

(source: Reuters)