Italy will begin receiving liquefied natural gas (LNG) from the Golden Pass LNG facility in the US, a joint venture between QatarEnergy and Exxon Mobil, from June, two sources familiar with the matter told Reuters.
The LNG tankers from the US will help Italy plug a potentially costly supply gap due to disruptions from Qatar linked to the US-Israeli war against Iran, the sources with knowledge of the LNG market said.
Italy is already receiving LNG from the US but these cargoes would mark the first LNG coming from Golden Pass facilities in Texas to Italy's Adriatic LNG terminal, they said.
In March, US exports of LNG rose to an all-time high as plants ran above nameplate capacity and new units started up, preliminary data from financial firm LSEG showed. Italian utility Edison, which is facing missing gas deliveries from Qatar, declined to comment.
QatarEnergy was not immediately available for comment. Exxon Mobil said gas exports from Golden Pass LNG would start in the second quarter of this year.
Edison has a long-term contract with QatarEnergy to receive 6.4 billion cubic metres of LNG per year, or around 10 per cent of Italy's total annual consumption.
Last week, the Italian company received notification that its gulf supplier had extended a pause in LNG deliveries because of the near-closure of the Strait of Hormuz and said that it would not ship 10 cargoes between April and mid-June.
Iranian attacks have knocked out 17 per cent of Qatar's LNG export capacity, QatarEnergy's CEO and state minister for energy affairs told Reuters last month.
QatarEnergy will have to declare force majeure on long-term contracts for up to five years for LNG supplies bound for Italy, Belgium, South Korea, and China, its CEO added.
Golden Pass LNG said earlier this week that it had produced its first LNG, paving the way for the delivery of an initial cargo. Once fully operational, the facility will be able to produce 18 million tonnes per annum.
(Additional reporting by Sheila Deng in Houston and Marwa Rashad in London; Editing by Nina Chestney and Bernadette Baum)