Briefing for Director-General Juul Jørgensen
Meeting with CEOs of leading gas companies: Claudio Descalzi, ENI
Request (ENER/6890)
Contact Point(s):
(ENER.TF1,
),
(ENER.TF2,
)
SCENE SETTER
Who
Claudio Descalzi, CEO of ENI
When
26 October 2022 at 09:00
Where
Webex
Why
The meeting is arranged because ENI could not attend Friday's event with the gas
companies Friday 21 October
Topics
x Legislative proposal of 18 Oct
x Participation in the joint purchasing scheme
MAIN MESSAGES
x Filling levels of European gas storages are approaching 100%, ahead
of and exceeding the 1st November deadline and target.
Nevertheless, the following winter will remain challenging and
storage efforts must continue.
x 30th September: Energy Ministers’ agreement on 30 September on
the Regulation on an emergency intervention to address high energy
prices, which set out a target for an
overall reduction of electricity
demand, a
revenue cap for inframarginal technologies and a
solidarity contribution on excess profits in energy
x 18th October: COM proposal on additional set of measures to
dampen the price of natural gas and to strengthen solidarity
between Member States.
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Fattah al-Sisi, in March and August 2022.
Indonesia
x In terms of natural gas and LNG, Eni has
2 offshore projects ongoing in
East Kalimantan, in Jangkrik and Merakes, which were in production by
2017 and 2021 respectively, with a very fast time to market thanks to the
synergies achieved between the two plants. Both are connected to the
onshore Bontang LNG liquefaction terminal, one of the most reliable in the
world, which supplies liquefied natural gas to both domestic and export
markets.
x A cargo of carbon neutral-certified LNG departed from Bontang for Taiwan in
2021, with gas from Eni's Jangkr k field.
L bya
x Libyan gas reaches Italy from the Wafa and Bahr Essalam fields via the
Green Stream pipeline, with a capacity of around 8 billion cubic metres per
year.
x In a
meeting in August 2022 between Eni’s CEO Claudio Descalzi and
the President of Libya's National Oil Corporation (NOC), Farhat Omar
Bengdara, Eni expressed its willingness to launch a
new phase of
investments to increase gas production in the country, leveraging the
significant exploration potential and existing facilities that guarantee access
to the domestic and European export markets.
x Eni's CEO welcomed the NOC’s
plan to increase the country's daily
production to 2 million barrels of oil per day and confirmed Eni's support
in achieving this goal.
Mozambique
x By the end of 2022, the first LNG cargo is scheduled to depart from Coral
Sul, the large floating liquefied natural gas (FLNG) plant connected to the
Coral field off the coast of Mozambique. A
first vessel is awaiting loading
at the terminal.
x In June 2022, ENI started to process hydrocarbons in the plant. The overall
project is known as Coral South and has a
capacity of some 3.4 million
tonnes per year of liquefied gas, allowing Mozambique to join with the
other significant LNG producing countries. Together with Mamba and Agulha,
Coral is part of a supergiant complex of fields discovered by Eni between
2011 and 2014 in the offshore Rovuma basin, with total resources estimated
at 2.4 trillion cubic metres of gas in place.
x Besides this unit, Eni is also working on a second floating LNG production
plant. The size of the project can range from 2.5 to 3 million metric tons per
year.
Nigeria
x In recent years, Eni have signed
long-term agreements to increase the
supply of liquefied natural gas. Eni holds a 10.4% stake in
Nigeria LNG
Ltd, which operates the Bonny natural gas liquefaction plant in the eastern
Niger Delta, with a production capacity of 22 million tonnes per annum
(MTPA) of liquefied gas, corresponding to around
35 billion cubic metres
per year of feed gas.
x The plant is currently undergoing an expansion and Eni expects it to be
operational in 2024, bringing the annual production capacity to over 30
MTPA. With this expansion,
Bonny will become one of the world's major
LNG hubs and will enable us to further develop the country's abundant
associated gas resources.
Qatar
x In June 2022,
Eni was chosen by QatarEnergy as a one of the new
partners for the expansion of North Field East (NFE) in Qatar; the world's
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Status of FSRUs in Italy:
Through summer Snam, with the backing of the Italian government, secured two FSRU units. A
first 5 bcm/a capacity vessel could receive regulatory approval still in October. The vessel was
bought from Golar, the latter will lease
Golar Tundra from Snam as an LNG carrier for a limited
period of time after closing, and assist Snam in the preparatory work for the installation of the
vessel in the selected port. The start-up of
Golar Tundra as an FSRU
expected during the
spring of 2023.
The second similar size unit comes from BW. The acquisition will be financed by Snam from its
own resources for an amount of approximately 400 million US dollars. The FSRU will be made
available to Snam at the closing date of the deal, which is
expected by the end of 2023.
EC understanding is that the capacities will be offered by Snam to the market. We haven't
received any notification from ARERA or the IT ministry in this regard. From the information we
have they should both operate in a regulated regime.
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Claudio Descalzi CV:
He joined Eni in 1981 as Oil & Gas field petroleum engineer and then became project manager
for the development of North Sea, Libya, Nigeria and Congo. In 1990 he was appointed Head of
Reservoir and operating activities for Italy.
In 1994, he was appointed Managing Director of Eni’s subsidiary in Congo and in 1998 he
became Vice President & Managing Director of Naoc, a subsidiary of Eni in Nigeria. From 2000
to 2001 he held the position of Executive Vice President for Africa, Middle East and China. From
2002 to 2005 he was Executive Vice President for Italy, Africa, Middle East, covering also the
role of member of the board of several Eni subsidiaries in the area.
In 2005, he was appointed Deputy Chief Operating Officer of the Exploration & Production
Division in Eni. From 2006 to 2014 he was President of Assomineraria and from 2008 to 2014
he was Chief Operating Officer in the Exploration & Production Division of Eni. From 2010 to
2014 he held the position of Chairman of Eni UK.
In 2012, Claudio Descalzi was the first European in the field of Oil&Gas to receive the
prestigious “Charles F. Rand Memorial Gold Medal 2012” award from the Society of Petroleum
Engineers and the American Institute of Mining Engineers. He is a Visiting Fellow at The
University of Oxford. In December 2015 he was made a member of the “Global Board of
Advisors of the Council on Foreign Relations”.
In December 2016 he was awarded an Honorary Degree in Environmental and Territorial
Engineering by the Faculty of Engineering of the University of Rome, Tor Vergata.
He graduated in physics in 1979 from the University of Milan.
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