Eni and Petronas Joint Venture to Develop Natural Gas
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Joint Venture Outlook: The Eni and Petronas joint venture SEARAH is projected to achieve $2.7 billion in net income and $6.7 billion in revenue by 2030, highlighting the significant potential of the project in the Southeast Asian natural gas market.
- Asset Scale and Financing: SEARAH is expected to have total assets of $27.3 billion, with a consortium of international banks structuring an initial $6 billion revolving credit facility to support investments from 2026 to 2030, ensuring liquidity for the project.
- Production Expectations: The joint venture is anticipated to reach an output of approximately 500,000 barrels of oil equivalent per day in the medium term, with operations expected to commence by the end of June, further solidifying Eni's position in the global energy market.
- Strategic Direction Clarification: Eni has clarified that it is not participating in any group interested in acquiring the former ILVA steelworks, focusing instead on exploring gas supply options for the facility, indicating a more cautious strategic positioning in the steel industry.
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Analyst Views on E
Wall Street analysts forecast E stock price to fall
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 52.310
Low
17.45
Averages
18.45
High
19.45
Current: 52.310
Low
17.45
Averages
18.45
High
19.45
About E
Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company's segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eni and Petronas Joint Venture to Develop Natural Gas
- Joint Venture Outlook: The Eni and Petronas joint venture SEARAH is projected to achieve $2.7 billion in net income and $6.7 billion in revenue by 2030, highlighting the significant potential of the project in the Southeast Asian natural gas market.
- Asset Scale and Financing: SEARAH is expected to have total assets of $27.3 billion, with a consortium of international banks structuring an initial $6 billion revolving credit facility to support investments from 2026 to 2030, ensuring liquidity for the project.
- Production Expectations: The joint venture is anticipated to reach an output of approximately 500,000 barrels of oil equivalent per day in the medium term, with operations expected to commence by the end of June, further solidifying Eni's position in the global energy market.
- Strategic Direction Clarification: Eni has clarified that it is not participating in any group interested in acquiring the former ILVA steelworks, focusing instead on exploring gas supply options for the facility, indicating a more cautious strategic positioning in the steel industry.
See More
Eni Secures $670M Financing for Carbon Capture Project
- Financing Support: Eni and Global Infrastructure Partners announced securing approximately $670 million in financing from 13 international lenders to support its carbon capture and storage project platform, reflecting strong market confidence in its strategic execution.
- Liverpool Bay Project: The Liverpool Bay CCS project is expected to commence operations in 2028, with an initial storage capacity of 4.5 million metric tons of CO2 per year, potentially reaching 10 million tons annually by the 2030s, marking a significant advancement in Eni's industrial decarbonization efforts.
- LNG Supply Agreements: Eni signed three long-term supply agreements with LNG sellers from the South Hub and North Hub gas projects, covering cumulative volumes of approximately 2 million metric tons per year from its operated Kutei Basin gas development projects, thereby strengthening its global LNG portfolio.
- Long-term Goals: The additional LNG volumes will support Eni's target of exceeding 20 million tons per year of contracted LNG supply by 2030, demonstrating its strategic positioning in the global energy transition.
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2026 EnerCom Denver Energy Investment Conference Set for August
- Conference Dates and Venue: The EnerCom Denver Energy Investment Conference will take place from August 17-19, 2026, at the Westin Denver Downtown, expected to attract over 1,000 industry professionals and investors, providing extensive networking opportunities.
- Charity Golf Tournament: Kicking off the event, a charity golf tournament will be held on August 17, requiring a $150 donation to participate, with proceeds supporting inclusive higher education for students with intellectual disabilities, highlighting the conference's commitment to social responsibility.
- Investor Engagement Opportunities: The conference offers investors direct access to executives from over 70 energy companies through one-on-one meetings and Q&A sessions, enabling them to gain insights into operational and financial strategies that inform investment decisions.
- Sponsors and Participating Companies: EnerCom Denver has attracted notable sponsors and participating companies, including Netherland, Sewell & Associates, showcasing its significant role in the global energy sector and enhancing connections with investors.
See More
2026 EnerCom Denver Energy Investment Conference Set to Take Place
- Conference Dates and Venue: The EnerCom Denver Energy Investment Conference will take place from August 17-19, 2026, at the Westin Denver Downtown, expecting over 1,000 industry professionals and investors, providing extensive networking opportunities.
- Charity Golf Tournament: On the opening day, a charity golf tournament will be held, requiring a $150 donation to participate, with proceeds supporting inclusive higher education initiatives in Colorado, highlighting the conference's commitment to social responsibility.
- Executive Access Opportunities: The conference offers investors direct access to executives from over 70 energy companies through one-on-one meetings and breakout Q&A sessions, aimed at helping investors gain insights into operational and financial strategies.
- Sponsorship and Presentation Opportunities: EnerCom Denver provides sponsorship opportunities for companies looking to enhance their market presence, attracting participation from several well-known firms, thereby increasing the conference's industry impact and professionalism.
See More
E.ON Reports 2% Core Profit Increase in Q1
- Core Profit Growth: E.ON reported a 2% year-over-year increase in core profit for Q1, reaching €3.3 billion (approximately $3.87 billion), primarily driven by its industrial customer business in Germany, demonstrating resilience amid economic and geopolitical challenges.
- Investment Decline: The company's investments fell from €1.5 billion last year to €1.4 billion this quarter, mainly due to cold weather in Germany causing delays in network infrastructure upgrades, which could impact future growth potential.
- Future Outlook Confirmation: E.ON confirmed its outlook for the current year, expecting adjusted core profit between €9.4 billion and €9.6 billion, with adjusted net profit projected between €2.7 billion and €2.9 billion, reflecting confidence in future performance.
- Acquisition Plans: Earlier this week, E.ON unveiled plans to acquire British energy retail firm Ovo Energy, aiming to expand its market share and strengthen its position in the competitive energy market.
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Eni Seeks Funding to Support FLNG Assets
- Funding Initiative: Eni (E) has engaged Morgan Stanley to assist in raising funds from investment firms such as Apollo Global Management (APO) and KKR, with the potential deal expected to generate at least €1 billion, thereby enhancing its market position in the liquefied natural gas sector.
- Special Purpose Vehicle: Under the proposal being discussed, the infrastructure fund would make an initial cash injection into a special purpose vehicle entitled to receive payments from the floating liquefied natural gas (FLNG) assets, providing investors with a stable cash flow structure.
- Geographic Diversification: This transaction would allow investors exposure to Africa and other markets outside the Middle East, helping them achieve geographic diversification in their portfolios amidst the ongoing Iran conflict, thereby mitigating risks.
- Technical Expertise: Eni has extensive experience in setting up and operating FLNG units, currently operating three FLNGs in offshore fields in Mozambique and Congo, and plans to deploy additional platforms in Mozambique and Argentina by 2030, further solidifying its market leadership.
See More
Eni and Petronas Joint Venture to Develop Natural Gas
- Joint Venture Outlook: The Eni and Petronas joint venture SEARAH is projected to achieve $2.7 billion in net income and $6.7 billion in revenue by 2030, highlighting the significant potential of the project in the Southeast Asian natural gas market.
- Asset Scale and Financing: SEARAH is expected to have total assets of $27.3 billion, with a consortium of international banks structuring an initial $6 billion revolving credit facility to support investments from 2026 to 2030, ensuring liquidity for the project.
- Production Expectations: The joint venture is anticipated to reach an output of approximately 500,000 barrels of oil equivalent per day in the medium term, with operations expected to commence by the end of June, further solidifying Eni's position in the global energy market.
- Strategic Direction Clarification: Eni has clarified that it is not participating in any group interested in acquiring the former ILVA steelworks, focusing instead on exploring gas supply options for the facility, indicating a more cautious strategic positioning in the steel industry.
See More
Eni Secures $670M Financing for Carbon Capture Project
- Financing Support: Eni and Global Infrastructure Partners announced securing approximately $670 million in financing from 13 international lenders to support its carbon capture and storage project platform, reflecting strong market confidence in its strategic execution.
- Liverpool Bay Project: The Liverpool Bay CCS project is expected to commence operations in 2028, with an initial storage capacity of 4.5 million metric tons of CO2 per year, potentially reaching 10 million tons annually by the 2030s, marking a significant advancement in Eni's industrial decarbonization efforts.
- LNG Supply Agreements: Eni signed three long-term supply agreements with LNG sellers from the South Hub and North Hub gas projects, covering cumulative volumes of approximately 2 million metric tons per year from its operated Kutei Basin gas development projects, thereby strengthening its global LNG portfolio.
- Long-term Goals: The additional LNG volumes will support Eni's target of exceeding 20 million tons per year of contracted LNG supply by 2030, demonstrating its strategic positioning in the global energy transition.
See More
2026 EnerCom Denver Energy Investment Conference Set for August
- Conference Dates and Venue: The EnerCom Denver Energy Investment Conference will take place from August 17-19, 2026, at the Westin Denver Downtown, expected to attract over 1,000 industry professionals and investors, providing extensive networking opportunities.
- Charity Golf Tournament: Kicking off the event, a charity golf tournament will be held on August 17, requiring a $150 donation to participate, with proceeds supporting inclusive higher education for students with intellectual disabilities, highlighting the conference's commitment to social responsibility.
- Investor Engagement Opportunities: The conference offers investors direct access to executives from over 70 energy companies through one-on-one meetings and Q&A sessions, enabling them to gain insights into operational and financial strategies that inform investment decisions.
- Sponsors and Participating Companies: EnerCom Denver has attracted notable sponsors and participating companies, including Netherland, Sewell & Associates, showcasing its significant role in the global energy sector and enhancing connections with investors.
See More
2026 EnerCom Denver Energy Investment Conference Set to Take Place
- Conference Dates and Venue: The EnerCom Denver Energy Investment Conference will take place from August 17-19, 2026, at the Westin Denver Downtown, expecting over 1,000 industry professionals and investors, providing extensive networking opportunities.
- Charity Golf Tournament: On the opening day, a charity golf tournament will be held, requiring a $150 donation to participate, with proceeds supporting inclusive higher education initiatives in Colorado, highlighting the conference's commitment to social responsibility.
- Executive Access Opportunities: The conference offers investors direct access to executives from over 70 energy companies through one-on-one meetings and breakout Q&A sessions, aimed at helping investors gain insights into operational and financial strategies.
- Sponsorship and Presentation Opportunities: EnerCom Denver provides sponsorship opportunities for companies looking to enhance their market presence, attracting participation from several well-known firms, thereby increasing the conference's industry impact and professionalism.
See More
E.ON Reports 2% Core Profit Increase in Q1
- Core Profit Growth: E.ON reported a 2% year-over-year increase in core profit for Q1, reaching €3.3 billion (approximately $3.87 billion), primarily driven by its industrial customer business in Germany, demonstrating resilience amid economic and geopolitical challenges.
- Investment Decline: The company's investments fell from €1.5 billion last year to €1.4 billion this quarter, mainly due to cold weather in Germany causing delays in network infrastructure upgrades, which could impact future growth potential.
- Future Outlook Confirmation: E.ON confirmed its outlook for the current year, expecting adjusted core profit between €9.4 billion and €9.6 billion, with adjusted net profit projected between €2.7 billion and €2.9 billion, reflecting confidence in future performance.
- Acquisition Plans: Earlier this week, E.ON unveiled plans to acquire British energy retail firm Ovo Energy, aiming to expand its market share and strengthen its position in the competitive energy market.
See More
Eni Seeks Funding to Support FLNG Assets
- Funding Initiative: Eni (E) has engaged Morgan Stanley to assist in raising funds from investment firms such as Apollo Global Management (APO) and KKR, with the potential deal expected to generate at least €1 billion, thereby enhancing its market position in the liquefied natural gas sector.
- Special Purpose Vehicle: Under the proposal being discussed, the infrastructure fund would make an initial cash injection into a special purpose vehicle entitled to receive payments from the floating liquefied natural gas (FLNG) assets, providing investors with a stable cash flow structure.
- Geographic Diversification: This transaction would allow investors exposure to Africa and other markets outside the Middle East, helping them achieve geographic diversification in their portfolios amidst the ongoing Iran conflict, thereby mitigating risks.
- Technical Expertise: Eni has extensive experience in setting up and operating FLNG units, currently operating three FLNGs in offshore fields in Mozambique and Congo, and plans to deploy additional platforms in Mozambique and Argentina by 2030, further solidifying its market leadership.
See More
