Eni and Zhejiang Energy are to enter a strategic cooperation agreement, to collaborate in gas and the LNG value chain in China and abroad.
According to Eni, that will operate the Coral Sul floating LNG platform in the Mozambique off-shore, the Memorandum of Understanding (MoU) with Zhejiang Energy “establishes a cooperation framework aimed at facilitating joint initiatives” between the two companies, across the gas and LNG value chain in China and internationally.
“The MoU 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. The initiatives identified in the MoU range from developing long term LNG supply agreement to joint participation in gas/LNG projects”, Eni adds.
According to ENI, 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”.
While Eni´s project in Mozambique is on track to start production next year, other LNG projects have been plagued by insecurity.
For Eni, the MoU represents a further step in the energy transition process, in the wake of the recent launch of a new strategy, which will lead the company to be carbon neutral by 2050, in all its operations, processes and products.
“In the long term, gas – which will be increasingly decarbonized – will represent more than 90% of Eni’s production”, the company says.
Eni has been present in China since 1984 and has recently established a new Representative Office in Beijing.