LNG

Feb 23 (LNGJ) - Eni, the Italian oil and gas major, reported increased annual net profits of €13.31Bln ($16.08Bln) compared with €5.82Bln in the previous year. However, profits plunged in the fourth quarter to €550 million from €3.52Bln in the same three months of 2021 because of special items, including reduced fair-valued commodity derivatives of €1.1Bln, asset impairments of €900M and an extraordinary solidarity tax of €700M.

   Eni’s LNG sales in 2022 dropped by 14 percent to 9.4 million tonnes from 10.9MT in 2021, impacted by lower supply from Russia and Nigeria. In LNG project activities, Eni noted that in November the first loading of LNG produced from the Coral Sul FLNG project offshore Mozambique was completed. In December, as part of the Congo LNG project from Eni’s gas reserves in block Marine XII, a turn-key contract was signed to build, install and commission an FLNG vessel. Eni will pair the “Tango FLNG” vessel purchased earlier from Exmar to speed up development plans. Congo LNG output should reach 3 MTPA in 2025.

Oct 28 (LNGJ) - Italian energy major Eni posted an almost five-fold increase in third-quarter net profits to €5.86 ($5.87M) compared with €1.20Bln in the same three months of 2021. “We plan to replace at least 50 percent of Russian gas flows this winter, leveraging on our broad and diversified reserve base, our long-standing relationships with producing countries and our growing presence in LNG,” said Eni Chief Executive Claudio Descalzi.

   “In the quarter we further enhanced our position in the gas supply chain via our exploration activities, the upstream acquisition of BP assets in Algeria and, on the midstream side, the purchase of the ‘Tango FLNG’ liquefaction vessel as part of the Congo gas valorization project,” added the CEO.

Italian energy company Eni reported group adjusted second quarter 2022 EBIT of €5.84 bill, up 13% quarter-on-quarter and more than doubling the year-on-year figures.

Eni, the Italian major developing Mozambique LNG and with stakes in liquefaction plants in Angola and Nigeria, said the Mozambican Coral South floating LNG project would start up in the second half of 2022.

Eni made the point on Coral South FLNG as it reported upstream adjusted gross earnings in the first nine months of €5.7 billion ($6.6Bln).

On Coral South FLNG, Eni added that there would be 3.4 million tonnes per annum and the LNG would be entering the market at the right time.

Eni also gave a limited update on plans for the Area 4 natural gas resources in the Rovuma Basin of Mozambique.

“Regarding Area 4, the updated project and the new final investment decision date will be defined and based on the results of the ongoing optimization phase,” said Eni.

“We will also take into account the evolution of the security situation in the northern part of Cabo Delgado Province in Mozambique,” it added.

This was a reference to violence in the area from insurgents that shut-down the TotalEnergies-led onshore LNG project for Mozambique’s Area 1 Rovuma Basin natural gas resources.

The third-quarter results for Milan-based Eni amounted to €2.4Bln ($2.8Bln), which was above the pre-Covid levels even as production was still ramping up after the maintenance season.

Project ramp-ups

Eni said the ramp-ups in Indonesia, Sharjah in the United Arab Emirates and in Angola more than offset the negative effects of US Hurricane Ida.

The company said its cash flow from operations before working capital for the nine months was strong at €8.1Bln, more than covering capital expenditure of €4Bln in the same period.

For all of 2021, Eni expects cash flow from operations before working capital to be close to €12Bln, based on a Brent crude oil price of around $70 a barrel.

Eni expects overall production to further recover in the fourth quarter at 1.76 million barrels per day.

Eni also explained the positive prospects for a discovery made in September 2021 offshore the Ivory Coast in West Africa.

“The first well discovered light oil and associated gas in a new play concept in the deep water Baleine Prospect, with preliminary estimate of more than 2 billion barrels of oil equivalent,” said Eni.

The company explained that the Baleine project would be designed to target fast-track development to meet the West African nation’s domestic natural gas need in an environmentally-friendly manner.

Eni said it had additionally signed an agreement with Russia’s Gazprom to revise the terms of existing long-term pipeline gas supply contracts in Europe.

“This is in the light of the current and future market evolution, including the settlement of the ongoing disputes between the parties,” explained Eni.

“The agreement underlines the importance of the role played by gas in the decarbonization process and sustainability strategies,” it added.

Eni, the Italian energy company with widespread LNG interests, said it would write off around €3.5 billion euros ($4Bln) from the value of its assets after revising down its long-term outlook for oil and gas prices.

Oct 25 (LNGJ) - Eni, the Italian energy company with stakes in projects such as Mozambique LNG, reported a 35 percent drop in third-quarter adjusted operating profit to 2.159 billion euros ($2.380Bln) from 3.304Bln euros in the same three months a year ago due to a weakened trading environment. The company said its quarterly worldwide natural gas sales fell 4 percent to 16.85 billion cubic metres from 17.47 Bcm in 2018. Eni’s quarterly LNG sales were unchanged at 1.85 million tonnes, though fell by 6 percent to 5.47MT in the first nine months of 2019.

   Eni’s natural gas sales in Italy fell 5 percent to 8.72 Bcm in the third quarter and amounted to 29.18 Bcm in the nine months period, mainly due to lower sales to wholesalers and hubs, partly offset by higher sales to the power and industrial sectors. Sales in other European natural gas markets amounted to 5.09 Bcm, in line with the 2018 quarter. Nine-month European natural gas sales fell 11 percent to 16.94 Bcm from 19.14 Bcm in 2018.

Italian energy company Eni, the developer of LNG projects in Mozambique and other world-class natural gas ventures worldwide, has had its debt rating reduced by the main US ratings agency because of concern over Italian government debt arising from the worsening budget dispute with the European Commission.

Oct 27 (LNGJ) - Italian energy company Eni said it expected to complete the sale of a 25 percent stake in Area 4 licence in the Rovuma Basin, offshore Mozambique to US major ExxonMobil before the end of 2017. Eni explained the status of the delayed deal in its third-quarter earnings statement. ExxonMobil agreed in March 2017 to pay around $2.8 billion for part of the Eni stake in the Area 4 concession with estimated resources of 85 trillion cubic feet of natural gas. Under the deal, Eni will continue to lead the Coral floating LNG project and all upstream operations in Area 4, while ExxonMobil will lead the construction and operation of liquefaction and export facilities onshore. Eni’s earnings showed third-quarter net profits of 340 million euros ($395M) compared with a loss of 562M euros in the year-ago quarter.

July 28 (LNGJ) - Italian energy company Eni posted adjusted overall second-quarter net profit of 463 million euros ($541M) compared with a loss of 317 euros in the same quarter of last year. Eni said one of its quarterly highlights was the signed of construction contracts for the Coral floating LNG project in Area 4 offshore Mozambique. Eni worldwide natural gas sales in the three months were down at 18.63 billion cubic metres compared with 20.48 Bcm in the year-ago quarter. “Sales in the European markets (7.34 Bcm) decreased by 23.2 percent, reflecting lower sales in Germany, Benelux and France, partly balanced by higher volumes sold in Turkey and in the UK,” said Eni.