COMPANY

Sales

In 2008, natural gas sales were 104.23 bcm, an increase of 5.27 bcm from 2007, or 5.3%, due to the growth achieved on international markets (up 19.9%), related in particular to the organic growth registered in Europe and the contribution of the acquisition of Distrigas, acquired in October 2008, (up 5.23 bcm), as well as favourable weather condition registered in the first quarter of the year.

These positives were partly offset by lower sales in Italy as a result of the economic downturn and stronger competitive pressures. Sales included own consumption, Eni's share of affiliates sales and E&P sales in Europe and in the Gulf of Mexico.

GAS SALES BY MARKET
FIGURES
LNG

Gas sales by market	2006	2007	2008	Change	% Ch.
(bcm)
Italy	57.09	56.13	52.87	(3.26)	(5.8)
Wholesalers	11.54	10.01	7.52	(2.49)	(24.9)
Gas release	2.00	2.37	3.28	0.91	38.4
Italian gas exchange and spot markets	-	1.90	1.89	(0.01)	(0.5)
Industries	14.33	12.77	10.64	(2.13)	(16.7)
Industries	13.33	11.77	9.59	(2.18)	(18.5)
Medium-sized enterprises and services	1.00	1.00	1.05	0.05	5.0
Power generation	16.67	17.21	17.69	0.48	2.8
Residential	6.42	5.79	6.22	0.43	7.4
Own consumption	6.13	6.08	5.63	(0.45)	(7.4)
International sales	41.01	42.83	51.36	8.53	19.9
Importers in Italy	14.10	10.67	11.25	0.58	5.4
European markets	20.71	24.35	31.78	7.43	30.5
Iberian Peninsula	5.24	6.91	7.44	0.53	7.7
Germany - Austria	4.72	5.03	5.29	0.26	5.2
Turkey	3.68	4.62	4.93	0.31	6.7
Belgium	-	-	4.57	4.57	..
Northern Europe	2.62	3.15	3.21	0.06	1.9
Hungary	3.10	2.74	2.82	0.08	2.9
France	1.07	1.62	2.66	1.04	64.2
Other	0.28	0.28	0.86	0.58	..
Extra European markets	1.51	2.42	2.33	(0.09)	(3.7)
E&P in Europe and in the Gulf of Mexico	4.69	5.39	6.00	0.61	11.3
Worldwide gas sales	98.10	98.96	104.23	5.27	5.3

Natural gas sales, excluding the contribution of Distrigas acquisition, amounted to 99 bcm, substantially in line with 2007 (up 0.04 bcm).
Despite the favourable weather conditions registered in the first quarter, natural gas sales in Italy (52.87 bcm) declined by 3.26 bcm from 2007, or 5.8%. This reduction related to wholesalers (down 2.49 bcm) and industrial customers (down 2.13 bcm) mainly reflecting the impact of lower gas demand, competitive pressures and the gas release program1 (up 0.91 bcm). These negatives were partly offset by higher supplies to the power generation sector (up 0.48 bcm) and higher seasonal sales to residential customers
(up 0.43 bcm) due to colder weather in the first quarter.
Sales to importers in Italy (11.25 bcm) increased by 0.58 bcm, up 5.4%, due to the circumstance that in 2007 a larger portion of these sales was replaced with direct sales in Italy.
Gas sales in European markets (31.78 bcm including affiliates and the contribution of Distrigas
acquisition) increased by 7.43 bcm, or 30.5%, reflecting also market share gains. Excluding
the impact of Distrigas, sales of natural gas on European markets amounted to 26.55 bcm, increasing by 2.20 bcm, or 9%, mainly due to the growth registered in:

France (up 0.64 bcm) due to marketing initiatives targeting wholesalers and industrial customers;
the Iberian Peninsula (up 0.53 bcm) due to higher supplies to wholesalers and the power generation segment;
Turkey (up 0.31 bcm), due to the progressive reaching of full operations of the Blue Stream pipeline;
Germany-Austria (up 0.20 bcm) due to higher sales to wholesalers.

Sales to markets outside Europe (2.33 bcm) are substantially in line with 2007.
E&P sales in Europe and in the United States increased by 0.61 bcm, up 11.3%, as a result in particular of the production ramp-up in the Gulf of Mexico.

(1) Eni and the Italian Antitrust Authority settled a procedure relating to the use of regasification capacity at the Panigaglia regasification plant. Terms of this settlement provide for the sale of 4 bcm of gas over a twenty-four month period effective October 1, 2007 at the entry point in the Italian gas transport system.

In 2008, LNG sales (12 bcm) increased by 0.3 bcm from 2007, up 2.6%, mainly reflecting higher volumes sold by the Gas & Power segment (8.4 bcm, included in worldwide gas sales) that increased by 0.4 bcm, up 5%, from 2007 due to higher volumes sold on European markets by Eni's affiliate Unión Fenosa Gas (Eni's interest 50%) and Distrigas contribution (0.7 bcm from Qatar).