Eni can supply more gas to help reduce Russia reliance

By Stephen Jewkes

MILAN (Reuters) – Italian energy group Eni will be able to provide additional gas resources to help reduce reliance on Russia following its invasion of Ukraine, the company said on Friday.

Setting out its strategy for 2022-2025, Eni also said it was picking up the pace on steps to reach its climate ambition to be carbon neutral by 2050.

“Our immediate response to the current crisis has been to leverage our established alliances with producing countries to find replacement energy sources for Europe’s energy needs,” Eni Chief Executive Claudio Descalzi said in a statement.

Italy has been seeking to increase energy imports from countries such as Azerbaijan, Algeria and Qatar as Western nations cut ties with Russia.

Eni is in a position to provide more than 14 trillion cubic feet (TCF) of additional gas resources in the short to medium term, it said. By way of comparison, it said its current reserves and resources of natural gas were 50 TCF.

Eni, the biggest foreign oil and gas producer in Africa, also said that projects in which it is involved would be able to supply 15 million tonnes per year of liquefied natural gas by 2025, helped by new projects in Congo, Angola, Egypt, Indonesia, Nigeria and Mozambique

The company also said it planned to create a sustainable mobility business combining biofuels and fuel stations.

It also plans to launch a 1.1 billion euro share buyback, following shareholder approval in May and is raising its annual dividend to 0.88 euro per share from 0.86 euro.

Like other majors, Eni is overhauling its oil and gas businesses as it shifts towards renewables and low-carbon energy in the coming decades.

Eni said it would cut absolute emissions by 35% by 2030, from 2018 levels, and by 80% by 2040, more aggressive targets than previously announced.

It said plans to list Plenitude — its renewable energy and retail business — were going ahead and that it had filed the registration document for the process.

(Reporting by Stephen Jewkes; Writing by Keith Weir; Editing by Jonathan Oatis)