ENI LNG WILL UP
PLATTS - Italy-based Eni said it plans to accelerate its growth in the LNG as well as gas and power markets as it looks to benefit from its integrated energy position and reduce costs and carbon emissions through to 2025.
The company outlined plans Friday to increase its annual contracted LNG volume to 12 million mt a year by 2021 and to 14 million mt/year by 2025 from the 10 million mt/year envisioned in its previous 2017-20 plan.
LNG will play "a crucial role" in meeting growing demand, particularly in Europe and Asia, CEO Claudio Descalzi said.
The company, whose upstream resources are more than 50% gas, sees the development of LNG trade as "a major opportunity" to maximize these assets since they provide flexibility of supply, he added.
The company has set a target to provide 70% of its total LNG volume from its own assets by 2021 compared with 30% now. Most of this volume will come from Africa and the Far East, Descalzi said.
In the gas and power segment, the company outlined plans to boost power generation, particularly renewables, with both domestic growth and within other markets where Eni already has a presence.
The company has 65 projects on the slate and will add 400 MW of capacity in the next couple of years, then boost this to 1 GW by 2021 with an investment of Eur1.2 billion ($1.5 billion) and further out, to 5 GW by 2025, according to Descalzi.
The company said it will target creating synergies with its existing assets and activities.
For example, this might mean using solar and wind generation to replace existing gas-fired generation, thereby not only reducing energy costs, but also freeing up the gas for other purposes. This might result in a 10% internal rate of return on it new renewable assets, Descalzi said.
Generation in Africa and Asia, mostly from solar, wind and hybrid projects, would reach 2.5 TWh/year from 2023 while Italian output would reach 400 GWh/year from 2022, he said.
Further downstream, Eni said it intends to increase its footprint in the European retail gas and power market, boosting end-user numbers by 25% to 11 million in 2021, with a focus on high growth customer tailored services.
Underpinning the gas and power growth is the need to transition to carbon reduction and offset emissions from upstream oil and gas, according to the company.
The group is targeting a 43% reduction in upstream unitary direct emissions by 2025, from its 2014 total, and an 80% reduction in fugitive (leaked) emissions as well as zero emissions from routine gas flaring by that date, it said.
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