Italy will receive LNG from QatarEnergy and Exxon's US Golden Pass starting in June.

Italy will start receiving liquefied natural gas (LNG) from the Golden Pass LNG facility in the United States, a collaboration between QatarEnergy and Exxon Mobil, beginning in June, according to two sources familiar with the situation.

The LNG shipments from the U.S. will assist Italy in addressing a potentially expensive supply shortfall resulting from disruptions in Qatari exports related to the U.S.-Israeli conflict with Iran, the sources said.

While Italy is already importing LNG from the U.S., these shipments will be the first from the Golden Pass facility in Texas to Italy's Adriatic LNG terminal, according to the sources. In March, U.S. LNG exports reached a record high as plants exceeded their capacity and new units came online, preliminary data from financial firm LSEG indicated. Italian utility Edison, which is experiencing reduced gas deliveries from Qatar, refrained from commenting. QatarEnergy was also unavailable for comment, while Exxon Mobil confirmed that gas exports from Golden Pass LNG would commence in the second quarter of this year.

Edison has a long-term agreement with QatarEnergy to supply 6.4 billion cubic meters of LNG annually, which constitutes about 10% of Italy's overall yearly consumption. Last week, Edison was informed that its supplier in the Gulf had extended a halt on LNG deliveries due to the near-closure of the Strait of Hormuz, stating that 10 cargoes would not be shipped between April and mid-June. Iranian attacks have impacted 17% of Qatar's LNG export capacity, as noted by QatarEnergy's CEO and Minister of Energy Affairs last month.

QatarEnergy may need to invoke force majeure on long-term contracts for LNG supplies destined for Italy, Belgium, South Korea, and China for up to five years, the CEO remarked. Earlier this week, Golden Pass LNG announced that it had produced its first LNG, setting the stage for the delivery of an initial cargo. Once fully operational, the facility is expected to have a production capacity of 18 million metric tons per year.