Eni to work on long-term LNG deal with China’s Zhejiang Energy

Italian energy firm Eni said it would work on a long-term LNG supply deal with China’s Zhejiang Energy as part of a memorandum of understanding revealed on Tuesday.

The memorandum establishes a cooperation framework aimed at facilitating joint initiatives between Eni and state-owned Zhejiang Energy across the gas and LNG value chain in China and internationally, the Italian firm said.

In addition, the memorandum builds on the companies’ “shared goal of promoting a reduction in emissions by favoring a switch from coal to gas in the production of electricity,” it said.

Eni said the initiatives identified in the agreement range from “developing long-term LNG supply agreement to joint participation in gas and LNG projects.”

Using gas to produce electricity instead of coal reduces by as much as half the greenhouse gas emissions of a power plant, providing an “immediate” step forward in decarbonizing the sector, Eni said.

Moreover, Eni said the agreement represents a “further step” in its energy transition process as the company plans to become neutral by 2050.

In the future, gas would represent more than 90% of Eni’s production, it said.

Eni has been present in China since 1984 and has recently established a new representative office in Beijing.

Most Popular

Excelerate in $700 million senior notes offering

US FSRU player Excelerate Energy aims to raise about $700 million via an offering of unsecured senior notes due 2030.

Adnoc, ENN seal 15-year LNG SPA

UAE’s Adnoc has signed a 15-year sales and purchase agreement with Chinese independent gas distributor ENN to supply the latter with LNG from its LNG terminal in Al Ruwais.

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

More News Like This

Italy’s Eni to join YPF’s Argentina LNG project

Eni's CEO, Claudio Descalzi, and the CEO of YPF, Horacio Marín, signed the memorandum on Monday to evaluate Eni's...

Mozambique approves Eni’s Coral Norte FLNG project

Italy's Eni has received approval from the government of Mozambique for its second FLNG project in Mozambique, Coral Norte (Coral North).

Eni’s Mozambique FLNG ships 100th cargo

Eni’s 3.4 mtpa Coral Sul FLNG, located offshore Mozambique, has shipped its 100th cargo of liquefied natural gas (LNG) since 2022.

Adnoc’s XRG wraps up Mozambique deal

Adnoc's investment unit XRG has completed the purchase of Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin in Mozambique, which includes Eni’s Coral South FLNG project.