Oil & Gas: natural gas is more and more present in the production mix

Energy derived from natural resources such as hydrocarbons remains a necessary tool to ensure access to energy for a world that is growing in terms of demographics and consumption. Even in its Net Zero scenario, the most challenging for reducing greenhouse gas emissions, the International Energy Agency (IEA) predicts that Oil & Gas will remain necessary even in 2050, albeit with a more limited production. At the same time, it is essential to apply the best available technologies to these activities for energy efficiency and emission reduction, for example with CO₂ capture, storage, and utilization (CCUS) projects.

Exploration remains what sets Eni apart and is a strategic driver of the decarbonization pathway, in the dual role of guaranteeing the replacement of the reserves produced to ensure the energy supplies the Company needs during the transition, and aligning the resource portfolio with the objectives of the production mix and medium- to long-term emission profiles consistent with the Net Zero target.

In particular, natural gas remains central to our production mix, supporting energy security and value creation in the long term. Among fossil fuels, gas has the lowest carbon footprint, assuming a role in supporting the energy transition. For this reason, the gas component will be increasingly present in our hydrocarbon production.

The recovery of hydrocarbons from fields takes place with the optimal number of production wells, accompanied by the necessary equipment. Once extracted, the hydrocarbons are processed and sent to the market via pipelines or ships or are stored as an energy reserve. The global energy market requires rapid response times. The time-to-maket, the time required to actually start selling hydrocarbon production, must be as fast as possible. In addition to the economic benefits, reducing time-to-market can generate environmental benefits by minimising on-field activities. In the context of natural gas, it also means accelerating the increase of the share of gas in the production mix.

In order to speed up this phase as much as possible, we use the fast track development model, which involves running the assessment and engineering development phases in parallel thanks also to the infrastructures already present in the area.

Furthermore, we use a modular approach with early production, followed by a gradual ramp-up. This exploration model ensures a time-to-market of approximately three and a half years from the discovery of a reservoir to its commissioning, about half the average in the energy industry. 

Production operations, whereby the hydrocarbons are extracted from the deposit, processed at the plants and sent to the market by pipeline or ship, follow the development stage. The productive life of a deposit can last for decades, during which it will be continuously monitored and work carried out within the wells to optimise production, sometimes including advanced recovery projects that involve injecting gas or water to increase the quantity of hydrocarbons that can be retrieved.

For our production activities, we implement initiatives to monitor and reduce fugitive methane emissions and implement energy efficiency initiatives through our technologies. In doing so, we are meeting our decarbonization commitments aimed at achieving Net Zero Emissions (Scope 1+2) for the upstream natural gas business by 2030. The CO₂ capture and storage projects and the solutions developed by our Research Centres contribute to the reduction of net emissions, while Carbon Offset Solutions compensate for residual emissions. 

The supply of natural gas to consumer markets relies on an integrated infrastructure system consisting of a network of pipelines connecting Europe to the main producing countries and a fleet of four ships for the transport of liquefied natural gas (LNG) operating globally from the Americas to the Far East. The integration of these two complementary transportation systems ensures a continuous and stable gas supply, even in complex market environments. The pipelines, developed over time through international collaborations and managed by joint ventures involving multiple companies and countries, guarantee a direct link between the main energy hubs and the destination markets. 

At the same time, the flexibility that characterises liquefied natural gas is a strategic element for diversifying supply sources. Eni’s fleet operates on a global scale in collaboration with third-party shipowners and under direct management, allowing for swift and effective responses to market dynamics through flexible contracts and diversified routes. This approach strengthens Eni’s presence in the LNG sector, helping to ensure energy security for Italy, Europe and other geographical areas. Furthermore, all the ships mentioned are “Panamax,” a feature that enables them to transit the Panama Canal, facilitating the transport of LNG from regional to global markets, adapting to international supply and demand fluctuations.