Sources say that RPT-Italy will get LNG from QatarEnergy's US Golden Pass in June

Two sources with knowledge of the matter have confirmed that Italy will start receiving liquefied gas (LNG), from a facility called 'Golden Pass LNG,' in the United States. This is a joint venture between QatarEnergy, Exxon Mobil and other companies. Two sources familiar with the LNG market have said that the LNG tankers coming from the United States would help Italy fill a potential supply gap caused by disruptions in Qatar due to the U.S./Israeli war on Iran.

They said that although Italy already receives LNG from the United States, these cargoes will be the first LNG to arrive from Golden Pass facilities located in Texas?to Italy's Adriatic LNG Terminal. The preliminary data of financial firm LSEG shows that U.S. LNG exports rose in March to a 'all-time' high, as plants were operating above their nameplate capacity, and new units were being installed. ?Edison Italian utility, which faces missing gas deliveries from Qatar declined to comment.

QatarEnergy was not immediately available to comment. Exxon Mobil announced that gas exports from Golden Pass will begin in the second quarter this year.

Edison has signed a long-term agreement with QatarEnergy for the delivery of 6.4 billion cubic meters of LNG annually, which is around 10% of Italy’s annual total consumption. The Italian company was notified last week that its Gulf?supplier has extended a pause on LNG deliveries due to the close-to-closure of Strait of Hormuz. It also stated that it will not ship?10 loads between April and June. Last month, QatarEnergy CEO and State Minister for Energy Affairs said that Iranian attacks had knocked 17% of Qatar's LNG export capacity.

QatarEnergy's CEO said that the company will be forced to declare force majeure for?long-term agreements for up to five year for LNG supplies bound for Italy, Belgium South Korea and China. Golden Pass LNG announced earlier this week it had?produced its first LNG. This paved the way for a?first cargo. The facility, once fully operational will be able produce 18 million tons of LNG per year. (Sheila Deng, Houston; Marwa Rashad, London; Nina Chestney & Bernadette Baum edited the story.)

(source: Reuters)