Claudio Descalzi Chief Executive Officer

The agreements for the diversification of energy sources

We work closely with producing countries, partners and local institutions to progressively diversify our global portfolio.

On the path to Net Zero by 2050, Eni is committed to ensuring energy security for its customers and the European system by securing energy supplies through a consolidated global portfolio within a network of agreements and collaborations with international partners and through alliances with producer countries.

Eni's medium- to long-term strategy based on source diversification, decarbonization and energy security, together with its worldwide presence enable it to respond effectively to market demands. Eni contributes to strengthening the security of energy supply by relying on a sustainable combination of reserves and resources, consolidating alliances with producer countries and thus facilitating an increasing diversification of energy sources.

Since the end of 2021 Eni's CEO Claudio Descalzi has been meeting with the governments and institutions of a number of producer countries in the Middle East and Africa, signing new agreements and consolidating alliances that aim to increasingly diversify supply sources, starting with natural gas, which we consider a major driver in supporting the energy transition, as well as renewables, including biofuels, wind and photovoltaics, and the research and development of low-emission game-changer technologies, such as CCUS for the capture, storage and reuse of carbon dioxide and magnetic confinement fusion, on which we have been working since 2018 in collaboration with the Commonwealth Fusion Systems (CFS), a spin-out of MIT in Boston.  

 

An overview of the agreements

The energy security and the need to diversify energy sources coming from the African continent to European markets were the focus of Eni's CEO's official visits to Algeria and Egypt in April and March 2022. The discussions focused on willingness to accelerate the development of new oil and gas projects through the fast-track construction of a new hub in the area of the Berkine Sud contract, thanks to our historic partnership with the Algerian company, which is enriched with new common goals for the energy transition to replace gas with renewable energy sources. Subsequently, Algeria announced an increase of 4 billion cubic metres of gas to be sent to Italy, and in the same days Eni signed a new contract with Sonatrach, Oxy and TotalEnergies for the operation of blocks 404 and 208, located onshore in the Berkine basin: the contract allows for an increase in investment, while offering the opportunity to exploit significant quantities of gas.

The meeting in Cairo provided us with an opportunity to strengthen our commitment to developing projects to accelerate the decarbonization of our own activities through CO2 capture and storage (CCS) and hydrogen production, particularly at the Damietta site. 

The agreements include a partnership signed in June 2022 with QatarEnergy, which selected Eni as a new international partner for the expansion of the North Field East (NFE) project, the world's largest LNG project, a landmark deal that will help increase global gas supply security. In the same days, we started pumping gas from the offshore Coral South field in Mozambique into Coral Sul, a Floating Liquefied Natural Gas (FLNG) facility. This is the first FLNG ever installed on the African continent, in deep water. With it, Mozambique joins the ranks of LNG producing countries.

To support the energy transition of the African continent, Eni has launched a series of joint initiatives in several countries to develop a high-quality biofuel supply chain according to new circular economy models.

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The future of energy: increasingly secure and diversified

Keeping global warming within the 1.5 C° threshold is a challenge that concerns everyone – governments, institutions, international agencies, the private sector, citizens – and in particular the energy sector, which is called upon to undergo a profound transformation very rapidly, whilst continuing to guarantee access to clean, sustainable and safe energy sources. As Eni CEO Claudio Descalzi has repeatedly stated on various public occasions and on social media (Italian version only), the current situation has created new threats to energy security that we must address pragmatically and with optimism:

The only thing to fear at the moment is inaction. At Eni, we continue to work to contribute to source diversification in the short, medium and long term, in line with our decarbonization strategy.

Claudio Descalzi, Chief Executive Officer of Eni

Eni and producer countries. Learn more

Read news and press releases about cooperation agreements in support of the energy transition.

Algeria

On 15 July 2022, Algeria announced that it will supply 4 billion cubic metres more gas to Italy and that the increase will take place from the end of the same month. Algeria is one of the key countries for gas importers. In the same days, Eni signed a new contract with Sonatrach, Oxy and TotalEnergies for the operation of blocks 404 and 208, located onshore in the Berkine basin. This contract allows the partners to increase investments, increasing the hydrocarbon reserves of the fields and extending their productive life, but also offers the opportunity to exploit significant quantities of gas that could become available for export and contribute to the diversification of gas supplies to Europe.
In April 2022, Eni's CEO Claudio Descalzi had met in Algiers with Algerian Prime Minister Aymen Benabderrahmane and Energy Minister Mohamed Arkab to review the company's activities in Algeria and future projects, and to discuss issues related to the current energy crisis. Moreover, during a meeting with Sonatrach CEO Toufik Hakkar, gas supply issues were addressed as well as the ongoing short- and medium-term initiatives to increase supplies through the TransMed/Enrico Mattei pipelines were reviewed. The meeting was an opportunity to confirm the willingness to accelerate the development of new oil and gas projects in the area of the Berkine South contract that came into effect on 6 March.  Finally, the two parties confirmed their joint commitment to accelerate the decarbonization of operations by replacing gas with renewable energy sources.

Read the press release

Bahrain

In June 2022, Eni CEO Claudio Descalzi and the Prime Minister of Bahrain met to discuss the progress of Eni's activities in the country, which focus on gas production and CO2 capture, energy transition and circular economy. During the meeting, which was also attended by the Chairman of the oil & gas holding company Nogaholding and the Minister of Petroleum and Environment of Bahrain, cooperation to strengthen the partnership in the area of sustainable development, integrating oil and gas with renewables and other decarbonization initiatives were discussed, with a focus on the development of a Carbon Capture Usage and Storage (CCUS) project in collaboration with Nogaholding. The CEO of Eni and the President of Nogaholding also discussed further potential joint cooperation initiatives for production optimization in deep gas, biorefining and biofeed facilities.

Read the press release

Egypt

In March 2022, Eni CEO Claudio Descalzi met with the President of the Arab Republic of Egypt, Abdel Fattah al-Sisi, to discuss Eni's activities in the country and areas of common interest and collaboration. In particular, the meeting discussed the production of natural gas and the export of LNG, areas in which Egypt  has acquired a central role in the Mediterranean since Eni's discovery of Zohr. The parties shared Egypt's vision of becoming a regional gas hub by leveraging existing LNG facilities. Today, Eni produces about 80% of the gas for the domestic market for electricity generation. The company is committed to supporting local production through an ambitious exploration and development programme, helping to restore Egypt's role as a net exporter of LNG. CEO Descalzi also outlined Eni's commitment to accelerate the decarbonization of its activities and to develop projects for CO2 capture and storage (CCS) and hydrogen production which had already been finalized in 2021. 

Read the press release

Mozambique

In June 2022 we started pumping hydrocarbons from the Coral South field off the coast of Mozambique into the Coral Sul Floating Liquefied Natural Gas (FLNG) plant. The Coral Sul FLNG is preparing to produce the first load of LNG in the second half of 2022, thus adding Mozambique to LNG-producing countries. The introduction of hydrocarbons is taking place after the timely completion of offshore commissioning activities. The FLNG ship arrived at the operating site off the coast of Mozambique in early January 2022.

Read the press release

Qatar

In June 2022, we were selected by QatarEnergy as a new international partner for the expansion of the North Field East (NFE) project in Qatar. The Minister of State for Energy Affairs, President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, and the CEO of Eni, Claudio Descalzi, signed a partnership agreement to establish a new Joint Venture (JV). QatarEnergy will hold a 75% share and Eni the remaining 25%. The JV in turn will hold a 12.5% stake in the entire NFE project, which includes 4 mega LNG trains with a combined liquefaction capacity of 32 million tonnes/year (MTPA). The NFE project will increase Qatar's LNG export capacity from the current 77 MTPA to 110 MTPA. With an investment of $28.75 billion, NFE is expected to become operational by the end of 2025 and will deploy state-of-the-art technologies and processes to minimize the overall carbon footprint, including CO2 capture and storage. The agreement has a duration of 27 years. It is a strategic move that strengthens our presence in the Middle East by gaining access to a leading global LNG producer with some of the largest natural gas reserves in the world. This collaboration also represents a significant step in our diversification strategy, allowing us to expand our portfolio of cleaner and more reliable energy sources.

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Republic of Congo

In April 2022, in the presence of Minister of Foreign Affairs of the Republic of Congo Jean-Claude Gakosso, Minister of Foreign Affairs Luigi Di Maio and Minister of Ecological transition Roberto Cingolani, Minister of hydrocarbons of the Republic of Congo Bruno Jean Richard Itoua and Eni CEO Claudio Descalzi signed a letter of intent in Brazzaville to increase production and export of gas. The Framework Agreement aims to strengthen joint operations in the field of hydrocarbon exploration and development with the aim of increasing natural gas export flows to Europe. The increase in gas production in the country will also leverage the development of an LNG project with planned start-up in 2023 and a full capacity of more than 4.5 billion cubic meters per year. The Republic of Congo and Eni have also agreed on decarbonization initiatives to promote a sustainable energy transition in the country, particularly in the areas of renewable energy, of agriculture – by developing an agricultural supply chain not in competition with the food chain – for the production of feedstocks for bio-refining, the conservation and sustainable management of forests, the adoption of clean cooking systems and the capture, use and storage of CO2.

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United Arab Emirates

In September 2021, we signed a Memorandum of Understanding (MoU) with Mubadala Petroleum which aims to identify opportunities for cooperation in the area of energy transition, including hydrogen and CO2 capture, use and storage in the UAE, in line with their respective decarbonization goals. The scope of cooperation covers potential joint opportunities in the Middle East, North Africa, South-East Asia, Europe and other regions of mutual interest. The MoU with Mubadala Petroleum marks another concrete step in line with Eni's commitment to achieve carbon neutrality by 2050. In Abu Dhabi with ADNOC we will build a carbon dioxide capture and storage facility and an enhanced oil recovery project in the BAB field, which will reduce emissions to 360,000 tonnes per year. We also started a project to electrify the fields of Lower Zakum, Umm Shaif / Nasr and Dalma, with the aim of further reducing emissions by 200,000 tonnes per year. 

Read the press release