The Italian energy group Eni has released its 2019 results and its Long-Term Strategic Plan to 2050. In 2019, Eni's hydrocarbon production reached a record plateau of 1.87 mboe/d, increasing by 5% net of price and portfolio effects and excluding the termination of the Intisar production contract in Libya from the third quarter of 2018. This production increase came from new field starts ups and ramp ups (+253 kboe/d), including the Zohr field ramp up (Egypt), plateau production at some Libyan projects, increases in Ghana and Angola (Agogo) and start-ups in Mexico (Area 1), Norway (Trestakk), Egypt (Baltim SW), and Algeria. At the end of 2019, the group had proved hydrocarbon reserves of 7.3 Gboe.
In the refining sector, Eni closed the acquisition of a 20% stake in ADNOC Refining (United Arab Emirates) to diversify its portfolio, and started the Gela biorefinery in Italy in August 2019. In the gas business, the group renewed its agreements with Sonatrach to import gas to Italy until 2027 and signed long-term LNG supply agreements with Nigeria LNG for 2.6 Mt/year of LNG from 2021. Eni increased its customer base by around 230,000 delivery points to 9.42 million at the end of 2019, while during the year, gas sales declined by 5% to 73 bcm, due to a 3% decrease in Italy (38 bcm, lower sales to the wholesalers and households and lower spot sales, partly offset by higher sales to the power sector) and a 13% fall in in European sales (23 bcm). Electricity sales rose by 7% to 39.5 TWh, due to higher sales to the free market.
According to its Long-Term Strategic Plan to 2050, Eni aims to reach an 80% reduction in net scope 1, 2 and 3 emissions (with reference to the entire life-cycle of the energy products sold) by 2050 and a 55% reduction in its emission intensity compared to 2018. To that end, the group plans to raise its upstream production by 3.5%/year until 2025, when it will reach a plateau; oil production is expected to decline through 2050, when it will only account for around 15% of the total production (85% gas). Emissions from gas production will be offset through CO2 capture and storage (CCS) projects targeting 40 Mt/year by 2050 and Eni plans to generate power from renewables (target of 55 GW renewable capacity by 2050) and from gas-fired power plants equipped with CCS. The Italian refineries will be gradually converted thanks to new technologies for the production of decarbonised products (recycling of waste materials) and the bio-refining capacity will be raised to 5 Mt/year, with palm oil use stopped from 2023.