A European country finds a ray of light in Qatar, the world needs another $7,000 billion to ensure enough gas

On October 23, Qatar Energy announced that it had reached an agreement to supply natural gas to Italy's Eni for 27 years.

Qatar reaches agreement to supply gas to Italy for 27 years. (Source: Reuters)

This is the latest in a series of major deals by QatarEnergy with European companies for gas supplies.

Under the agreement, Doha will supply 1 million tons of gas per year and the transfer of liquefied natural gas (LNG) to Italy's Tuscany region is expected to begin in 2026. Qatari Energy Minister Saad al-Kaabi welcomed the agreement, saying it would boost joint cooperation in the coming years.

QatarEnergy's deal with Eni follows long-term agreements Qatar has struck with European companies. Last week, Qatar announced a 27-year deal with British energy giant Shell.

Earlier this month, France's Total also announced a time-limited deal like Shell's with Qatar.

Qatar is one of the world's leading LNG producers along with the United States, Australia and Russia. Qatar's traditional markets for gas are Asian countries, including China, Japan and South Korea.

However, after the conflict between Russia and Ukraine broke out, European countries rushed to find alternative sources of natural gas to replace the supply from Russia.

* Bloomberg news agency quoted information from the Institute of Energy Economics of Japan (IEEJ) saying that the global industry will need 7,000 billion USD in investment to ensure adequate gas supply and avoid crisis until 2050.

The money will be used to build new LNG facilities and expand existing plants, as well as develop new gas storage facilities as countries shift from coal to cleaner energy sources, the report said.

The IEEJ notes that this is based on the assumption that global emissions will fall by 56% by mid-century. However, if emissions remain at current levels by 2050, the world will need nearly $10 trillion to avoid gas shortages.

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