Natural gas supports the energy transition

Natural gas is important for the security of energy supplies and its Green House Gas emissions will be progressively reduced.

The path to reliable, low-emission energy

Of all fossil fuels, natural gas has the smallest carbon footprint. The challenge is to further reduce its emissions by eliminating so-called fugitive methane emissions, the elimination of process flaring, the integration of renewables into production activities, the use of carbon capture, utilisation and storage (CCUS) technologies, Natural Climate Solutions projects and blue hydrogen production. In parallel, natural gas will be increasingly complemented by biogas.

In this context, gas plays a central role in Eni's strategy to achieve zero net GHG emissions (scope 1,2,3) by 2050, contributing to the goal of offering our customers increasingly decarbonised products and services. It remains a key element not only for Eni's business, but also to strengthen the security of energy supply. The combination of these two aspects - reduction of GHG emissions and energy security - makes natural gas a major contributor to the energy transition.

For these reasons, the gas component will become increasingly dominant in Eni's production mix, accounting for 60% of hydrocarbon production in 2030 and over 90% in 2050, in a context in which overall hydrocarbon production is expected to reach a plateau in 2025 and then decline over time.

The use of natural gas to improve energy access is also part of our commitment to the United Nations Sustainable Development Goals (SDGs). Adopting a lower-impact energy mix of gas and renewables is part of our energy access projects in the countries in which we operate, particularly in sub-Saharan Africa, where more than half a billion people do not have access to electricity despite the wide availability of energy sources.

The role of gas in energy security

In addition to continuing to reduce its GHG emissions, Eni is committed to ensuring energy security for its customers and for the overall European system by securing natural gas supplies through a global portfolio.

Our presence around the world allows us to respond adequately to market demand and help strengthen energy supply security, relying on some 50 trillion cubic feet (TCF) of reserves and resources.

Eni's gas projects are already well positioned to supply key markets and are expected to reach more than 15 million tonnes per annum (MTPA) of contracted LNG volumes by 2025. In the short to medium term, the company is also in a position to make more than 14 TCF of additional gas resources available in the market.

Increasing diversification of supply sources is also facilitated by our established alliances with producing countries.

Reducing GHG emissions: targets and results

In the 2022-2025 Strategic Plan we set a target of achieving through CCUS technologies a total storage of around 10 million tonnes of CO2 per year (MTPA) in 2030, growing to around 35 MTPA in 2040 and around 50 MTPA in 2050. As early as 2025, HyNet North West will begin storage operations in the UK, the world's first low GHG industrial cluster, where we are in leading position through Eni UK.

A particular aspect linked to the decarbonisation of natural gas, concerns the progressive reduction of fugitive methane emissions linked to the production and transport of natural gas, with the aim of reducing them to zero. Methane is a climate-altering gas, so it is important not to release it into the atmosphere. We have already achieved significant results in this area, with a 92% reduction in fugitive methane emissions from upstream operations by 2021 compared to 2014.

A further goal we have set in our 2022-2025 Strategic Plan is to achieve a 43% reduction in upstream emission intensity by 2025. Also by 2025, we aim to achieve zero routine flaring, i.e. to avoid burning any “process” gases associated with hydrocarbon extraction. In this regard, we have achieved a 31% reduction in 2021 compared to 2014. At the same time, where possible, we are integrating renewables into upstream activities to co-power production facilities and reduce their carbon footprint.