Much more LNG will arrive on the market in the coming years. How confident are you that extra demand will emerge to absorb this supply, and what will drive this growth in consumption?
Signoretto: Among traditional energy sources, LNG is for sure the brightest spot, with demand expected to grow steadily over the next years from around 400mt in 2024 to around 600mt at the beginning of the next decade.
Projections show, on the other hand, that the arrival of a new wave of LNG supply will come at a speed expected to initially outpace that of demand over the next few years (2027–30), therefore causing a bearish impact on prices.
This means some additional demand will be needed to absorb increasing supply, both via structural growth (especially in rapidly developing countries in South Asia and Southeast Asia) and via elasticity, with expected lower LNG prices triggering additional demand.
In fact, markets are becoming more and more flexible and sophisticated in their behaviours and quick in reacting to pricing stimulus (interfuel competition, opportunistic buying, increasingly flexible infrastructures and regas facilities). Some of the aforementioned regions and also other larger importers (e.g. China) have already proven their ability to react rapidly to such triggers and take profit of such optionality, thus effectively contributing to rebalancing the market.
In any case, this cyclical pattern is well known in the LNG business. In fact, after some years in which supply is higher than demand, the market rebalances itself, given that current sanctioned projects and probable developments will possibly already fall short of the increase in demand, especially considering the depletion of older projects at the beginning of the next decade.
Last year saw record FIDs on new liquefaction capacity. To what extent do you think this momentum will be maintained in 2026?
Signoretto: 2025 was an exceptional year for the global LNG industry, with approximately 70mt/yr of liquefaction capacity sanctioned worldwide. This unprecedented pace was largely driven by regulatory action from the US administration, which eased permitting bottlenecks that had previously stalled key US liquefaction projects.
Looking ahead, 2026 is expected to deliver additional FIDs, with the US to remain the key contributor, although not at the extraordinary scale seen in 2025. This year should remain an active one for project progression and selective FIDs, with activity increasingly focused on projects underpinned by solid commercial structures, regulatory certainty and competitive cost.
In this evolving landscape, backfill projects and innovative development partnerships will play a critical role. By leveraging existing liquefaction infrastructure or integrated value chains, backfill developments can significantly reduce capital costs and accelerate time to market—advantages increasingly valued by investors in an environment of tightening project economics and increasing competition for capital.
Eni is targeting multiple strategic FIDs in 2026 that exemplify this approach. These include additional LNG production via the Bontang liquefaction plant in Indonesia, focusing on exploiting existing gas infrastructures and existing LNG train capacity; the fast-tracked monetisation of East Mediterranean gas through Egypt’s Damietta LNG facility, allowing new assets in Cyprus to be developed as LNG, thus enabling competitive access to regasification markets; and participation in the integrated upstream and midstream Argentina LNG development, in collaboration with YPF. This project, involving the development of two FLNGs, will position Argentina as a rising LNG supplier to global markets.
These initiatives align with Eni’s broader strategic objectives of expanding its gas and LNG portfolio through disciplined, capital-efficient investment, leveraging commercial synergies, reinforcing energy security and strengthening long-term commercial positions in key regions.
What do you view as Eni’s major accomplishments in the gas and LNG trading space over the past year, and what do you hope to achieve in 2026?
Signoretto: Last year proved to be a landmark one for Eni’s gas and LNG activities, marked by the delivery of key project milestones, decisive strategic partnerships and progress towards its long-term production and portfolio targets.
Among the most significant achievements were the start-up of the Merakes East project in Indonesia and the arrival of the Nguya FLNG in Congo-Brazzaville for Phase 2, as well as the ramp-up of Congo LNG Phase 1, reinforcing Eni’s global LNG production footprint across Africa and Southeast Asia.
Moreover, new gas developments in Indonesia will underpin additional LNG production from Bontang. Such new projects will satisfy demand in Indonesia while increasing the country’s LNG offering to the global market.
A strategic highlight was the FID for Coral North, a Mozambique development advancing on schedule with start-up expected by the end of 2028, in line with Eni’s commitment to expanding LNG capacity.
The year also saw material progress on the commercial and partnership front. Eni signed a memorandum of understanding and framework agreement with Petronas to form a joint venture integrating gas and LNG assets in Indonesia and Malaysia. Eni also concluded a heads of agreement and final technical project description with YPF to participate in the integrated upstream and midstream Argentina LNG project.
In the Eastern Mediterranean, Eni reached an agreement with Egypt and Cyprus to fast-track the Cronos gas development offshore Cyprus through the Damietta LNG plant in Egypt, enabling the commercialisation of new gas production as LNG, strengthening a key supply corridor to Europe.
Commercial momentum continued with the execution of a 20-year LNG supply contract with US exporter Venture Global; two LNG sales contracts with Turkey’s Botas (a three-year deal from 2025 and a ten-year agreement from 2028); and a ten-year LNG sales agreement with Thailand’s Gulf Development Co., commencing in 2027.
These achievements serve as part of Eni’s broader strategic drive towards gas-led production and LNG growth. Under its medium-term roadmap, Eni expects natural gas to constitute more than 60% of its upstream hydrocarbon production by 2030, reflecting a conscious shift towards cleaner-burning fuels, before rising to over 90% by 2050 as part of the company’s long-term energy transition agenda. LNG, in particular, is central to this strategy, with contracted volumes expected to grow materially through new projects and supply agreements, strengthening Eni’s position in global gas markets.
Collectively, these developments underscore Eni’s strengthened execution capability, its focus on a diversified, integrated LNG portfolio, and its commitment to achieving a more gas-centric hydrocarbon mix while supporting energy security and cleaner emission outcomes for global markets.
This interview was conducted for the LNG2026 show in Doha, Qatar, in February, and published in the LNG2026 Show Daily, produced by Petroleum Economist. Click here to read the Show Dailies in full and here to find out more about LNG2026.
Comments