Italian energy giant Eni reported a rise in its first-quarter liquefied natural gas sales and expects its LNG volumes to continue to grow as it looks to secure additional supplies for Italy and Europe.
In the January-March period, Eni sold 2.80 bcm or about 2.05 million tonnes of LNG, a rise of 27 percent when compared to 2.20 bcm in the same period last year.
Eni said in its quarterly report its total natural gas sales of 18.26 bcm increased by 4 percent compared to the same period of 2021, due to the higher gas volumes marketed in Italy.
The company’s global gas and LNG portfolio segment reported an adjusted operating
profit of 931 million euros ($981.6 million), up by 961 million euros from the comparable quarter and a rise of 395 million euros compared to the prior quarter.
Eni attributed the rise to increased sales volumes, better results of the international LNG business, amid a strong pricing environment.
More LNG volumes to come
Bosted by higher volumes of LNG coming from the 5 mtpa Damietta facility in Egypt, Eni’s LNG sales rose 15 percent to 10.90 bcm or about 7.9 million tonnes of LNG in 2021.
In addition, Eni recently signed a deal with EGAS to increase Egyptian LNG exports to Europe, and specifically to Italy, as part of efforts to secure additional volumes in order to reduce reliance on Russian gas.
The firm also agreed with Congo to boost gas production, as it looks to start exporting LNG from its planned project in the African country next year.
Besides these developments, Eni should also launch its Coral Sul FLNG in Mozambique later this year.
Eni’s chief Claudio Descalzi said in the report this quarter had been one of major strategic developments for Eni.
“We rapidly reacted to the ongoing challenges of the energy market by leveraging our global upstream and partnerships with producing countries to find alternative and additional supply
opportunities for Europe,” he said.
“We have signed important agreements in Algeria, Egypt and the Republic of Congo, while another one was reached in Angola, consolidating our joint operations in the countries and promoting increased gas exports to Italy and Europe in the interest of transitioning to a low carbon economy,” Descalzi said.