Eni Joins Exxon, Total, Shell, and Conoco in Qatar’s Mega-LNG Expansion, a $30 Billion Project for the World’s Largest Liquefied Natural Gas (LNG) Project: What Changes Now?

Eni, the Italian Oil Company, Has Been Chosen to Join the Group Formed by Exxon, Total, Shell, and Conoco for the Expansion of the Natural Gas Project in Qatar. The Use of LNG Can Automate the Automotive Industry While Exponentially Reducing Carbon Dioxide Emissions in the Environment.

The project that will expand the use of liquefied natural gas (LNG) by over US$ 30 billion, equivalent in direct conversion to over R$ 150 billion, was created by the companies Exxon, Total, Shell, and Conoco. However, now the Italian giant, Eni, will be part of it. The news about the new partnership was revealed during this Wednesday, June 8, in Qatar.

The North Field complex, located in Qatar, will receive new investments and ensure that the region maintains an even more positioned status in relation to global natural gas exports, especially to all of Europe. The investment comes at a crucial moment as the entire continent is searching for a solution to end imports of gas from the Russians. The war between Russia and Ukraine is inflating commodity prices, such as natural gas and oil. However, allies of Putin claim that sooner or later, countries opposing the Russians will have to import these materials, as it is a human necessity that cannot be hindered by political issues.

Eni’s Entry Ceremony Is Scheduled to Take Place This Sunday, June 12, in Qatar

Qatar Energy (QE), the state-owned company that will receive the investment from the multinationals, stated in an interview that it will hold an entry ceremony for Eni this Sunday, June 12. The CEO of Exxon, Darren Woods, said he will participate in a conference to declare the new formalities.

Overall, it is estimated that Exxon, Shell, and Total will hold a significant portion of the project, reaching up to 25%. And, as a way to compensate for the entry of another institution into the project, it is likely that the Italian company will have to provide shares to each of the brands. QE also states that it intends to integrate other groups into the investments, including those from China.

The state-owned company stated that its North Field Expansion (NFE) project is relying on the supply of high-standard trains for gas transportation while exponentially increasing their production. By 2027, the company announced that it aims to increase production from 77 million tons to around 126 million.

The War Between Russia and Ukraine Will Leave a Mark on the Market That Is Difficult to Recover

Analysts do not hesitate to say that the war between Russia and Ukraine impacts not only the two countries but also the global internal market. To give an idea, the price of oil is currently quoted at US$ 122, and the bank Goldman estimates that, to control supply and demand, the price will have to be raised to US$ 135. This could impact the pockets of Brazilians as the price of gasoline is already over R$ 10 in some states.

The President of the Republic, Jair Bolsonaro, has reportedly created a project that advocates for the end of the taxes on every liter of gasoline. However, with the price disparity, even with the elimination of taxes, the prices are expected to remain high.