Eni plans to boost LNG portfolio

Italy’s Eni intends to turn its gas and power business into the company’s global gas and LNG marketing arm and boost its LNG portfolio, according to Eni’s new strategy revealed on Wednesday.

Eni noted that the gas and power business is expected to reach breakeven this year and positive later on “as it benefits from the alignment of gas supply contracts to market conditions and a reduction in logistics costs.”

The company expects the unit to report earnings before interest and tax in excess of €600 million (Approx: US$632 million) from 2019 onwards.

Eni further noted that, under its new strategy, it intends to focus on the return of equity gas and transform its retail business into a unit.

In the upstream sector, Eni expects its hydrocarbon production to grow by 3 percent from 2017 through 2020 period, through ramp-up and start-up of new projects and further project optimization.

Under its development plan, Eni expects to deliver new discoveries of 2-3 billion boe, almost two times the discoveries of the previous plan, by drilling around 120 wells in more than 20 countries.

The company expects the average breakeven price of new projects to be approximately $30/bbl.

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LNG World News Staff