Our commitment to managing climate-changing gas emissions and Eni's leadership role in the battle against climate change.
|Reduction of GHG emission intensity index (upstream)||2025: -43% vs 2014||-20% vs 2014|
|Reduction of hydrocarbons' volumes sent to process flaring||Zero process flaring by 2025||-16% vs 2014|
|Reduction of fugitive methane emissions (upstream)||2025: -80% vs 2014||-66% vs 2014|
|Improved carbon efficiency index||2021: -2% a year vs 2014||-5.9% vs 2017|
|Investments to reduce GHG emissions (100% of operated activities) in the 2019-22 period about 0.7 billion €|
The progressive improvement in the GHG intensity index has allowed the absolute value of upstream GHG emissions from hydrocarbon production to remain stable in the period 2014-2018 despite the considerable increase in production (+25%). Without this improvement, Eni GHG emissions would have been almost 6 MtCO2 eq higher in 2018. The objective of reducing upstream GHG intensity will contribute to the target of improving the carbon efficiency index by 2% a year by 2021 compared to 2014. It will be pursued by all Eni business units and will include Scope 2 emissions.
Eni direct GHG emissions on a 100% operated basis: in 2018 remained substantially stable (+0.5%) compared to 2017. About 50% is already subject to carbon pricing schemes, mainly the European Emission Trading Scheme which covers all the major mid-downstream plants, 56% comes from the Exploration & Production business.
In 2018 the upstream GHG intensity index calculated per unit of gross hydrocarbon produced (100% operated) improved by 6% vs 2017, reaching 21.44 tCO2 eq/kboe, thanks to the reduction in emissions from flaring and the ramp-up of the gas fields in Egypt (Zohr) and Indonesia (Jangkrik), as well as the return to full production in Norway (Goliat), plants with lower emission intensity than the average of E&P assets.
The main driver to reduce the emission intensity of the upstream business is the minimisation of flaring, which in 2018 accounted for 27% of emissions from hydrocarbon production. Eni is engaged in specific programmes to reduce gas sent to flaring, through an emphasis on the production of electricity for local populations, distribution for domestic consumption or export. Where these practices are not possible, Eni has created reinjection systems in natural gas reservoirs. In 2018, emissions from flaring fell by 8%, mainly due to zero flaring achieved in Turkmenistan (Burun field) and emergency flaring containment actions. In 2018, Eni invested 39 million € in flaring-down projects, especially in Nigeria and Libya.
Eni confirms its commitment to zeroing of hydrocarbon sent to process flaring by 2025, 5 years earlier than the timescale laid down by the Global Gas Flaring Reduction (GGFR) initiative promoted by the World Bank, of which Eni is a partner.
Eni continues its commitment to optimising its monitoring and reporting processes to reduce methane emissions from operated assets. Methane emissions are essentially concentrated in the upstream value chain (98 kton, equal to 94% of the Eni total) and are due to fugitive emissions, unburnt methane from flaring and process venting. As part of the Oil and Gas Climate Initiative (OGCI) partnership, a collective target for reducing upstream methane intensity (defined as the ratio of total methane emissions to net natural gas production) was announced in 2018 and envisages reaching a value of 0.25% by 2025. The reductions recorded so far have been achieved by implementing LDAR (Leak Detection and Repair) campaigns, which consist in carrying out on-site monitoring campaigns of plant components in order to identify and eliminate methane leaks by scheduling appropriate maintenance. It is possible to control almost entirely fugitive emissions enabling savings and improving safety in operations. To date, 69% of Eni upstream assets (calculated on the basis of production levels) are already covered by LDAR programmes. Eni is also continuing its participation in the Climate and Clean Air Coalition (CACC) Oil & Gas Methane Partnership, a public-private partnership led by the UNEP, in which it develops appropriate plans to control methane emissions, based on the execution of monitoring campaigns and the assessment of mitigation opportunities.
In absolute terms, in 2018 Eni achieved a reduction of almost 2 MtCO2 eq in upstream fugitive methane emissions compared to 2014, in line with the target of an 80% reduction by 2025. Emissions are stable vs. 2017 as the progressive implementation of on-site campaigns has been offset by new fields recently started up (Zohr, Jangkrik), so the campaigns will be carried out in 2019
The carbon efficiency index aims to measure the intensity of direct and indirect GHG emissions (Scope 1 and Scope 2) of Eni’s main productions, thus measuring their degree of efficiency in a decarbonization context. The target extends the GHG reduction targets to all business areas with an improvement of 2% a year to 2021 compared to the value of the 2014 index. This target refers to the overall Eni index, maintaining the appropriate flexibility in the trends of the individual businesses.
In 2018, the index stood at 33.90 tonCO2 eq/kboe, down 5.9% from 2017 (36.01 tonCO2 eq/kboe), thanks to positive upstream results and a reduction in the emission intensity of refineries. This reduction already makes it possible to achieve the 2021 target, but Eni is set on pursuing an improvement of at least 2% per annum in coming years as well.
In 2018, Eni invested about 10 million € in energy efficiency projects, which, once in full operation, will yield energy savings of 313 ktoe/year, amounting to a reduction in emissions of about 0.8 million tonnes of CO2 eq. In the upstream sector, structural and operational interventions to make production processes more efficient made possible to add a further 19 ktoe in energy savings, equivalent to 22 kton CO2 eq compared to those achieved last year (729 kton CO2 eq compared to baseline 2014). For the other industrial sectors, works carried out in 2018, at full operation, will provide further savings of around 18 ktoe, equivalent to 42 ktons of CO2 eq of direct emissions avoided, in line with planned savings. The commitment to improving energy performance is also demonstrated by the inclusion in Eni’s HSE regulatory system of tools aligned with ISO 50001 certification schemes. Currently, about 60% of Eni’s global energy consumption is due to industrial installations already ISO 50001 certified and more than 90% coverage is expected by 2022.
Eni pays particular attention on the emissions impact associated with its activities along the entire value chain, starting from the supply chain of goods and services for the production process up to the environmental impact connected with the disposal of the finished products. As regards emissions from purchases of electricity, steam and heat from third parties (so-called Scope 2), they are quantitatively negligible in Eni (about 0.7 million tonnes CO2 eq), since in most cases electricity generation takes place through its own installations and the related associated GHG emissions are recorded among direct emissions. Nonetheless, Eni has included Scope 2 emissions within the scope of the target of improving carbon efficiency by 2% a year by 2021. As regards all the other emissions in the value chain (so-called Scope 3), Eni reports them using internationally recognised methods (IPIECA) and is committed to representing its own emission impact throughout the entire energy value chain of the products it markets. In the Oil & Gas sector, the greatest impact in terms of emissions is associated with the final use phase of the products sold (e.g., natural gas and oil products, such as gasoline, diesel, kerosene), which Eni quantifies on the basis of the production of hydrocarbons sold.