Eni & Thailand's Gulf Development Ink Long-Term LNG Supply Deal

Eni S.p.A E, an Italian integrated energy company, has signed a long-term liquefied natural gas (LNG) sales and purchase agreement with Gulf Development Company, one of the largest private power companies in Thailand. Per the agreement, Gulf Development Company will purchase 0.8 million tons per annum (MTPA) of LNG from Eni for 10 years. The deliveries are expected to start in 2027. The new contract aligns with the company’s goals to build a global LNG portfolio while securing long-term commercial relationships with players in high-potential international markets.

The LNG supplied by Eni will be delivered to Thailand’s domestic regasification terminals. The regasification terminals convert the liquid fuel back into the gaseous state for use in the power sector. This contract follows a previous LNG deal signed between Eni and the Gulf Development Company in 2024 for the sale of 0.5MTPA of LNG starting in 2025.

This agreement marks Eni’s first long-term supply arrangement with Thailand, thereby expanding its presence in Asian markets. This aligns with Eni’s broader strategy to expand its global footprint and tap into markets with high-growth potential, where demand for natural gas is expected to remain strong. Eni also intends to grow its LNG capacity to 20 MTPA by 2030, with contributions from its LNG projects in Congo, Mozambique, Indonesia and other countries.

E’s Zacks Rank and Key Picks

Eni currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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This article originally published on Zacks Investment Research (zacks.com).

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