March 2, 2024

Eni SPA entered into an agreement with Kazakhstan’s KazMunayGas (KMG) to build a 250-megawatt (MW) hybrid renewables and gas power plant in the Zhanaozen, Mangystau Region of Kazakhstan, the Italian state-owned energy company said Thursday.

The hybrid power plant will be the first of its kind in the Central Asian nation, Eni said in a press release. The project will include a solar power plant, a wind power plant, and a gas power plant for the production and supply of low-carbon and stable electricity to KMG subsidiaries in the area. The hybrid model helps diversify and decarbonize the energy supply for the Mangystau Region’s oil and gas assets, as well as contributes to the human capital development in the renewable energy sector, Eni said.

“Eni is strongly committed to strengthen its leadership in Kazakhstan energy transition, accelerating the evolution of its business model. The project we announced today marks a further step towards growing Eni’s renewable generation capacity, while supporting Kazakhstan’s decarbonization path”, said Eni CEO Claudio Descalzi.

The hybrid plant project highlights different technologies, including modern renewable power plants developed by Eni’s subsidiary Plenitude in cooperation with KMG, and gas power plants for balancing capacity, according to the release.

The deal announcement followed a meeting between the Eni CEO and Kazakhstan President Kassym-Jomart Tokayev in Astana, in which they talked about company projects and decarbonization initiatives in the country. Descalzi highlighted Eni’s strategy for gas valorization—the reduction of routine gas flaring during operations—in Karachaganak and Kashagan to meet domestic gas demand, as well as further boost energy transition investments in renewables and bio-feedstocks.

Eni said it started operations in Kazakhstan in 1992 as a joint operator of the Karachaganak field and an equity partner in various projects in the Northern Caspian Sea, including the Kashagan giant field. Eni is the joint operator, with KMG, in the exploration block Abay. In the Kazakh renewables sector, Eni operates Arm Wind, a Plenitude subsidiary, with a combined installed and under-construction capacity of 150 MW.

Libya Agreement

In an earlier news release, Eni said it signed a memorandum of understanding with Libya to study and identify opportunities to reduce greenhouse gas emissions and develop sustainable energy in the country. The signing of the agreement was part of the visit of Libyan Prime Minister Abulhamid Dabaiba to Italy.

Under the terms of the memorandum, Eni will work on reducing carbon dioxide emissions through the reduction of routine gas flaring, fugitive emissions, and venting, as well as possible projects for the reduction of hard-to-abate sector emissions. In addition, new solutions for the development of renewable energy and initiatives for electricity efficiency in the country will be evaluated. Finally, the company will work on the identification of additional gas resources from existing fields, to be developed as part of an integrated project for the domestic market and potentially for export.

Eni said it is the main international gas producer in Libya and has been operating in the country since 1959, with a large portfolio of assets in exploration, production, and development. The company produced 1.6 billion cubic feet per day of gas in 2022 and has an 80 percent share of national production. The company operates through Mellitah Oil and Gas BV, a 50-50 joint venture with Libya’s National Oil Corporation. Its 2022 equity production was 165,000 barrels of oil equivalent per day.

Earlier in the month, Eni signed a deal for its plant-based fuel oil HVOlution with Azimut-Benetti Group. The biofuel made of hydrogenated vegetable oil replaces fossil fuel used in the testing of new yachts and maritime trials by Azimut-Benetti.

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