Italy’s Eni and China’s Zhejiang Energy will work together to pursue gas and liquefied natural gas (LNG) opportunities as part of a strategic switch towards cleaner fuels.
The pair signed a memorandum of understanding yesterday aimed at facilitating joint initiatives between the two companies across the gas and LNG value chain in China and internationally.
The MoU builds on Eni’s and Zhejiang’s shared goal of promoting a reduction in emissions by switching from coal to gas in the production of electricity. The initiatives identified in the MoU range from developing long-term LNG supply agreements to joint participation in projects.
“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 decarbonising the sector,” claimed Eni in a statement.
Eni has recently launched a new strategy, which aims to make the company carbon neutral by 2050, in all its operations, processes and products. In the long term, gas – which will be increasingly decarbonised – will represent more than 90% of Eni’s production – said the Italian company.
Eni has been present in China since 1984 and has recently established a new representative office in Beijing.