Is natural gas in good shape for the future?
“Are we entering a Golden Age of Gas?” – That was the question the International Energy Agency asked in 2011 when examining the combination of market dynamics and policies that might allow natural gas to thrive in the future.
The idea of a “Golden Age” was built on a few pillars. On the supply side, the main thesis was that the abundance of unconventional gas resources would help to bring down supply costs, making natural gas more attractive and accessible worldwide. On the demand side, the main elements were an ambitious policy promoting gas use in China, lower growth in nuclear power and more use of gas in road transport.
Seven years later, most of these pillars are still at least partly in place. Today’s price levels are very much in line with those in the “Golden Age” analysis; China has reserved a strategic role in its energy policy for gas; the outlook for nuclear has indeed faded somewhat; the only area where natural gas has not made much ground is road transport, where electric vehicles have taken the lead.
Yet the mood in the natural gas industry, at least outside the United States, has not always been so optimistic since then. Demand has slowed considerably for most of the period since 2011, from an average of 2.8% per year between 2000 and 2010, to 1.4% per year from 2011-2016; lower prices squeezed revenues; traditional business models have been questioned without anyone being sure what will take their place; and the competitive landscape has become significantly more complex, as the traditional sparring partners for gas – coal and, to a lesser extent, oil – have been joined by the rising forces of renewables and energy efficiency.
What could the long-term outlook look like for natural gas? Every year, the World Energy Outlook chooses a fuel for an in-depth analysis. In 2017, that focus was on natural gas. The four chapters of that analysis, including a wealth of detail on the outlook for natural gas, are now available to download for free – and describe in detail the possible long-term opportunities and constraints that could face this fuel in the future.
Three key trends highlighted in the WEO projections and in the IEA’s five-year forecasts also came through very clearly in new data on global energy and CO2 emissions trends for 2017.
China and other emerging markets are the consumers of the future
Natural gas demand rebounded and grew by an estimated 3% in 2017. China alone accounted for nearly 30% of global growth – with more than 30 bcm out of a total of nearly 120 bcm. This reflects a structural shift in the Chinese economy away from energy-intensive industrial sectors as well as a move towards cleaner energy sources, with both trends benefiting natural gas. As part of the official policy drive to “make China’s skies blue again,” there has been a strong push to phase out the practice of burning coal in industrial boilers (especially those in and around major cities) as well as reduce coal use for residential heating.
In the New Policies Scenario to 2040, global natural gas consumption expands at an average rate of 1.6% per year to 2040, lower than the estimated 3% achieved in 2017 but a much higher rate than oil (0.5% per year on average) and coal (essentially flat). More than 80% of this growth takes place in developing countries, led by China, India and other countries in Asia. The challenge for the gas industry is that much of the gas needs to be imported (and so transportation costs are significant); infrastructure is often not yet in place; and policy-makers and consumers are very sensitive to questions of affordability.
Gas-for-power is no longer the main growth opportunity
The data for 2017 show that most of the increase came from gas consumption by industry and for use in buildings. In the WEO analysis, power generation is no longer the main projected growth area, even though this is currently the largest gas-consuming sector worldwide. Competition from other sources of electricity generation, from renewables in particular, is fierce. Only where gas prices are expected to be very low (e.g. United States, Russia and parts of the Middle East) is it commercially viable for gas plants to run at high utilisation rates and provide baseload power. In most gas-importing regions, the primary role of gas plants is to provide mid-load and peak load power, implying significantly lower utilisation rates and hence lower gas burn.
In the New Policies Scenario, the largest increase in gas demand comes instead from industry. Where gas is available, it is very well suited to meeting industrial demand. Competition from renewables is more limited, especially for provision of high-temperature heat. Gas typically beats oil on price, and beats coal on convenience and on emissions (notably for air pollutants, a major policy consideration in many developing countries). A similar combination of convenience and environmental advantages helps gas to displace household coal consumption for heating and as a cooking fuel. Gas also has potential in some countries as a lower emissions alternative to oil for transportation, especially for heavy-duty vehicles.
Competitiveness is key
Gas consumers responded in 2017 to abundant and relatively low-cost supplies, underlining that – if natural gas is to gain a firm foothold in emerging markets – it is of crucial importance that suppliers keep the cost gap to alternative fuels, including solar and wind, as narrow as possible. Projected changes on the supply side are indeed maintaining some downward pressure on prices and increasing the comfort that importers can feel in the future security and diversity of supply. A period of ample availability of LNG, driven largely by new liquefaction capacity in Australia and the United States, is deepening market liquidity and the ability to procure gas on a short-term basis. New projects and exporters are increasing the range of potential suppliers and competition for customers. Destination-flexible US exports are reducing the rigidity of LNG trade. More and more gas is being priced on the basis of benchmarks that reflect the supply-demand balance for gas, rather than the price of alternative fuels. The contours of a new, more globalised gas market are becoming visible.
This re-writing of the gas rulebook is creating uncertainty for some producers, who have claimed that long-term contracts indexed to oil prices and other trade rules (notably take-or-pay clauses) are vital for the financing of capital-intensive upstream and infrastructure projects. In the WEO-2017, we argue that the emergence of a new, more flexible gas order, the rise of major company “aggregators” that maintain a diverse global portfolio of gas sources and market positions, and a marked shift towards LNG are interdependent developments. The risk of a shortfall of investment in new supply is real, but in our judgement there is scope for brownfield project expansions and smaller, less capital-intensive projects in the LNG business to underpin project development in the next ten years and prevent a hard landing for markets in the 2020s. As gas trade expands by more than 500 bcm over the period to 2040, LNG’s inherent flexibility give it the edge over most new cross-border pipeline projects and, as a result, LNG meets the lion’s share of the growth in long-distance gas trade in the period to 2040. Although the European Union remains the largest importer of gas, Asian countries lead the growth in global gas trade with the Asia Pacific region as a whole accounting for some 80% of the growth in net-imports.
The other key debate about natural gas that we focused on in the WEO-2017 is its role in the multiple energy transitions that are underway. This includes how gas might fare in a scenario that is consistent with the Paris Agreement and the sharp reductions in global emissions that are required to keep the rise in global average temperatures down to ‘well below 2 degrees’ and to improve the world’s air quality.
Two key attributes of gas come strongly into play in this discussion. First, versatility: gas can play multiple roles across the energy system in a way that no other fuel or technology can match, generating power, heat, and mobility. Second, the environmental dimension: combustion of natural gas does produce nitrogen oxides (NOX), but emissions of the other major sources of poor air quality, particulate matter and sulfur dioxide, are negligible. The combustion of gas releases some 40% less CO2 than the combustion of coal and around 20% less than the burning of oil. Taking into account the efficiency of transforming gas into electricity, a combined-cycle gas turbine emits around 350 grammes of CO2 per kilowatt-hour, well under half of what a supercritical coal plant emits for the same amount of electricity. Gas-fired power plants also have technical and economic characteristics that make them a very suitable partner for a strategy favouring the expansion of variable renewables.
However, the industry cannot take it for granted that environmental arguments work in its favour, especially in ambitious decarbonisation scenarios such as the Sustainable Development Scenario. As the cleanest burning fossil fuel and one that emits few local air pollutants, natural gas fares best among the fossil fuels in the Sustainable Development Scenario, with consumption increasing by nearly 20% between 2016 and 2030 before exhibiting a very gradual decline. However, the contribution of natural gas to decarbonisation in this scenario varies across regions, between sectors and over time. In energy systems that are currently heavily reliant on coal, notably in China and India, natural gas can play a sustained, positive role. It has much less potential to help emissions reduction in more mature gas markets, although in the United States and Europe there is a window of opportunity for gas to aid decarbonisation by accelerating the switch away from coal. With the rapid ascent of low-carbon technologies in this scenario, the principal function of gas is to provide flexibility to support the integration of variable renewables. For some industrial applications, and in some parts of the transport sector, the “bridge” for gas is a much longer one, as cost-effective renewable alternatives are less readily available.
Secondly, it is important to recall that methane – the primary component of natural gas – is a potent greenhouse gas and emissions of methane along the oil and gas value chain (which are estimated for 2015 at around 76 Mt of methane) threaten to reduce many of the climate advantages claimed by gas. In the WEO-2017, we present first-of-a-kind marginal abatement cost curves for methane emissions from oil and gas operations, which suggest that around 40-50% of today’s emissions from the oil and gas sector could be avoided using approaches that have zero or negative costs (because the captured methane can be sold). Implementing just these cost-effective abatement measures in the New Policies Scenario would have the same impact on reducing the average global surface temperature rise in 2100 as immediately shutting all existing coal-fired power plants in China. If natural gas is to play a credible role in the transition to a decarbonised energy system, this is an opportunity for action that cannot be ignored.
Ultimately, the prospects for natural gas will be determined by how it is assessed by policy-makers and prospective consumers against three criteria: is it affordable, is it secure, and is it clean? In each of these areas, there is homework for the industry to do, to keep costs under control, to ensure adequate and timely investment, and to tackle the issue of methane emissions. If the answers to these questions are positive, then gas can make a persuasive pitch for a place in countries’ energy strategies, underpinning further infrastructure development and opening new opportunities for growth.
The International Energy Agency will provide its updated 5-year gas markets forecasts in the next Gas 2018 publication, which will be launched at the World Gas Conference, in Washington D.C., on 26 June 2018.
Strategic Partnership Opportunities among ASEAN countries towards Renewable Energy
Quoting from Singapore’s Prime Minister, Lee Hsien Loong, during his plenary speech at the 42nd ASEAN Summit in Labuan Bajo (Wednesday, May 10, 2023), which promotes other ASEAN countries to have a joint power grid (based on an article published by Channel News Asia). This statement is highlighted after the success made by the Lao PDR-Thailand-Malaysia-Singapore project in supplying renewable energy. In recent years, the importance of renewable energy has become increasingly apparent as countries worldwide seek to reduce their carbon footprint and address the impacts of climate change. The ASEAN region, comprising ten Southeast Asian countries, is no exception towards the movement. As a region with a rapidly growing energy demand, ASEAN countries are looking to renewable energy as a critical solution to address their energy needs while mitigating climate change by shifting towards renewable energy. In this context, strategic partnership opportunities among ASEAN countries can be crucial in accelerating the Sustainable Energy Transitions Initiative.
Renewable Energy Opportunities in the ASEAN Region
The ASEAN region has diverse renewable energy resources, including solar, wind, hydro, geothermal, and biomass. According to the International Renewable Energy Agency (IRENA) in 2018, wind energy is potentially growing in the Philippines, Indonesia and Vietnam because the wind speeds are between six to seven metres per second. On the other hand, IRENA and ACE (2016) highlighted geothermal potential in Indonesia and the Philippines. Besides, Indonesia, the Philippines and Singapore also have opportunities to explore ocean energy since the geography position is an archipelago (ASEAN RESP, 2016).
However, despite the potential of these resources, the region still relies heavily on fossil fuels, particularly coal, to meet its energy needs. According to the study “The ASEAN Climate and Energy Paradox” by I.Overland, H. F. Sagbakken, H. Chan, M. Merdekawati, B.Suryadi, N. A. Utama & R. Vakulchuk, the energy demand from fossil fuels between 2000 to 2018 resulted to 85% while the share of renewable energy in the energy mix remained. This reliance on fossil fuels contributes to climate change and exposes the region to energy security risks and price volatility. As a result, there is a growing recognition among ASEAN countries that renewable energy can play a critical role in reducing dependence on fossil fuels and achieving sustainable energy systems.
Countries Strategic Partnership
ASEAN countries can accelerate the deployment of renewable energy technologies and overcome common challenges. Some countries have already made significant progress in developing their renewable energy sectors, while others are still in the early stages of deployment. By working together, countries can learn from each other’s experiences and leverage their strengths to achieve renewable energy goals.
The unprecedented COVID-19 pandemic has highlighted the importance of resilience and sustainability in the energy sector. The pandemic has disrupted energy supply chains, and more demand for renewable energy will rise in 2020. The key players in the energy sector should form more strategic partnerships to encourage energy trading in response to the high demand for electricity across the region in the future.
As a result, strategic partnerships among ASEAN countries can help accelerate the transition to renewable energy and create a more resilient energy system that can withstand future shocks. In February 2023, the Electricity Generating Authority of Thailand (EGAT) and Tenaga Nasional Berhad (TNB) entered into a Memorandum of Understanding (MoU) to conduct a feasibility study to enhance the interconnection of the power grid between Peninsular Malaysia and Thailand.
Benefits of Building Strategic Alliance
The development of regional energy infrastructure can significantly impact regional energy infrastructure development. Establishing interconnectors and cross-border electricity trading can enable ASEAN countries to share renewable energy resources and optimise their use. This can address the issue of intermittency, which is a common challenge for renewable energy sources. Through diversification of renewable energy sources and sharing resources, ASEAN countries can create a more stable and resilient energy system by diversifying renewable energy sources and sharing resources.
In addition to sharing knowledge and infrastructure, strategic partnerships create opportunities for joint investments in renewable energy projects. By pooling their resources and expertise, ASEAN countries can undertake more significant and complex projects which require more work executions and upskill their employees through tacit knowledge. Most of the electricity firms in the ASEAN region are state-owned companies and require endless government support. For instance, governments can collaborate to develop large-scale renewable energy projects, requiring substantial capital investment and technical expertise. Joint assets can attract private sector investment and reduce the financial risks associated with renewable energy projects.
A strategic partnership can promote the adoption of policies and regulations that support the growth of renewable energy. ASEAN countries can develop common standards and rules for deploying renewable energy technologies, such as feed-in tariffs and tax credits. ASEAN countries can create a more predictable and stable policy environment for renewable energy investment.
Future of Renewable Energy
Other than the potential benefits of strategic partnerships, ASEAN countries may need to construct more institutional mechanisms to facilitate regional cooperation on renewable energy. There are existing platforms for cooperation among ASEAN countries, such as the ASEAN Centre for Energy and the ASEAN Power Grid. These platforms are more targeted initiatives. ASEAN countries shall also focus on renewable energy and facilitate collaboration among relevant stakeholders, including government agencies, industry players, and civil society organisations.
One notable initiative is the recent launch of the ASEAN Catalytic Green Finance Facility (ACGF), which aims to mobilise private sector investment for green infrastructure projects in the ASEAN region. The ACGF, which the Asian Development Bank (ADB) supports, will provide loans and technical assistance to project developers and financial institutions to support the development of renewable energy and energy efficiency projects. This initiative is an example of how strategic partnerships between governments and international organisations can help to catalyse private sector investment in renewable energy. According to ADB’s website, realising the shortfall of green infrastructure at $100 billion per year, private capital should consider grasping the opportunities to fill the gap to accelerate renewable energy growth.
The development of offshore wind projects requires significant technical and financial resources. Countries can address these challenges through strategic partnerships by pooling resources and expertise to develop large-scale offshore wind projects. For instance, several countries, such as Vietnam, Thailand, and the Philippines, are exploring offshore wind’s potential as a key renewable energy source. Based on the article published by Nikkei Asia entitled “Vietnam Offshore Wind Power Sparks Influx of Foreign Investment”, during the COP26 United Nations Climate Summit 2021 in Glasgow, the Vietnamese Prime Minister, Pham Minh Chinh mentioned the government’s commitment to shifting to renewable energy through the wind power in which accounts for about 5% of energy on a power generation capacity at the moment and the government plan to raise till 30% by 2025 despite the challenges faced.
In conclusion, strategic partnerships among ASEAN countries towards renewable energy have the potential to accelerate the transition to a low-carbon energy future, promote regional energy security, and support sustainable economic development. However, realising this potential requires more institutional coordination, financial resources and inclusive stakeholders’ involvement to address the future landscape of renewable energy. By working together and leveraging their strengths, ASEAN countries can create a more sustainable energy future that benefits people and the planet.
Role of Renewable Energy in Mitigating Climate Change as part of Saudi Vision 2030
Growing up in Saudi Arabia between the first and third decade of the 21st century, I, like most others, was aware of the slow yet noticeable changes in the Saudi climate over the years. The curse of climate change became apparent, with rain getting intense and flash floods ravaging coastal cities frequently. I was in Jeddah during the 2009 flash floods and witnessed firsthand the horrors the locals went through, with 122 dead and more than 350 never to be found again. Such a harrowing change in climate in a short span is concerning for the public as well as the policymakers who have begun to look for solutions, particularly in renewable energy.
The kingdom is part of some of the countries that are most vulnerable to climate change. Saudi Arabia has an acute water shortage issue that poses a threat to its people and the environment. Besides water scarcity, the kingdom is also a potential victim of rising sea levels (a 3mm increase per year), with about 210,000 people at risk of flooding by 2050. Temperature rises are also a concern for the Saudis, studies predict an increase between 3 to 4.2 degrees Celsius of daily surface mean temperature in the long run. According to The Climate and Atmosphere Research Center, about 600 million people in the Middle East and North Africa are at risk of heat exhaustion and heart attacks due to heat waves by the start of the next century. Extreme rainfall is also a potentially lethal impact of climate change on Saudi Arabia, as evident by the 2009 and 2018 flash floods. Precipitation in the kingdom is anticipated to increase by around 23%-41% in the long run due to climate change, which only aggravates existing issues.
Since Saudi Arabia depends on oil for its income, any factors affecting it will affect the economy and the people. Due to changes in trends, oil demand is constantly decreasing due to the increased popularity of green energy, causing oil prices to fluctuate since 2014. Studies show that the kingdom must keep about 68% of its oil reserves and 85% of its fossil fuels untouched to keep warming below 1.5 – 2 degrees Celsius. Moreover, the Middle East must abandon 40% of its oil and 60% of its natural gas reserves. Since the kingdom relies on oil for most of its income, such measures will prove detrimental to its economy and ultimately its people.
Therefore, in 2016, the kingdom announced plans for Vision 2030, which aimed to curtail many of the issues surrounding climate change using renewable energies. For this purpose, the Saudi Green Initiative was launched in 2016 and aimed to eliminate emissions by 2060. The kingdom plans to invest more than $100 billion into the project to achieve its objectives. However, there is reasonable doubt about these goals, which may sound overly ambitious. As the country continues to receive criticism from the Climate Change Performance Index which gives it an average ranking of 62nd. Therefore, there is considerable risk involved as the country is currently not on track with the Paris Agreement’s 1.5-degree Celsius limit.
During the past seven years, Saudi Arabia has invested approximately $400 billion into renewable energy, with plans to invest an additional $30 billion in the next two years. As part of Vision 2030, the government plans to achieve renewable and sustainable energy projects for 9.5 GW of RnSE (Renewable and Sustainable Energy). However, energy demand is projected to rise to 120 GW by 2032, which is much more than what is currently being worked on. The government plans to invest in solar, wind, and hydropower energy to achieve its energy demands and mitigate climate change.
Saudi Arabia has immense potential for solar power, after the government’s testing through 46 weather stations across the country. It has a large surface area and lies in the Global Sunbelt. Through solar power, the kingdom plans to generate 42.7 GW of energy. In 2019, the kingdom connected the 300 MW Sakaka power plant, 10 MW Layla al-Aflaj power plant, and 50 MW Waad al-Shamal power plant to the rest of the country. Furthermore, the Saudis have shown interest in seven additional plants in Madinah, Rafha, al-Qurayyat, al-Faisaliah, Rabigh, Jeddah, and Mahd al-Dahab with a combined capacity of 1.52 GW. In 2020, further progress was made by embarking on four more plants with a total capacity of 1,200 MW. The Saudis have made promising progress in solar energy, as evidenced by the kingdom becoming the 6th largest in solar energy generation, with plans to generate a third of their energy from solar power. However, there are large sums of costs associated with solar panels, along with dealing with external factors such as high temperatures, dust, and humidity that reduce efficiency. It can also backfire and damage the environment by causing soil erosion. On the other hand, it has been argued that the benefits outweigh the drawbacks as it is renewable and produces zero air and water pollution, which is why the Saudi government should continue to explore this option with the same momentum they currently maintain as it provides the opportunity to explore other economic policies such as carbon taxes.
The kingdom has also invested in wind energy to generate 16 GW of energy. A $500 million wind project in Daumat al-Jandal was funded by the government in 2017. ARAMCO also installed two 2.75 MW plants in Turaif and Huraymila in 2017 and 2019. Aiming to exploit its wind potential, the kingdom intends to become one the largest wind energy markets in the next half of the century. However, it requires a constant volume of wind, which is projected to decrease in the kingdom. It can damage the environment by harming the land and killing birds. However, this drawback has been explored by researchers and newer models of wind turbines are more efficient at maximizing productivity and minimizing drawbacks. Moreover, the wind farms often add to the scenic beauty which can come in handy for the kingdom that is seeking to make tourism 65% of its GDP by 2030.
The kingdom currently relies on desalination plants to curb its water shortage, producing around 4 MCM per day. It seeks to increase the number to 8.5 MCM per day by 2025 with its 28 distillation plants to achieve climate objectives. The desalination plants can also be used to produce hydropower, particularly the Ras al Khair plant, as well as others such as the ones in Jubail, Khobar, al-Khafji, Jeddah, al-Shuaibah, Yanbu, and al-Shuqaiq. However, the kingdom faces drawbacks in maximizing hydropower production due to its unfriendly landscape for dams and the lack of water bodies. Moreover, the kingdom is a tribal society at heart in its vast deserts which retains the propensity of social conflicts between the government and the locals, as had happened in the Tabuk region between the state and Huwait tribe due to the construction of NEOM and The Line. Therefore, hydropower may not be a viable option for Saudi Arabia, but it is still a viable substitute.
Renewable energy will provide unsurmountable benefits to Saudi Arabia. Studies show that the GCC region can rid itself of almost one gigaton of carbon emissions and save around $87 billion in reserves. Renewable and sustainable energy will also create many jobs for Saudis, estimated to be 80,000 by 2030. It will also preserve the rapidly depleting oil reserves of the country and reduce carbon emissions by almost 3kgs for every m3 of produced water.
There are certain challenges and risks that the Saudis currently face. There is a lack of coordination between different institutions of the state to execute policies and collect data. This causes a gap in accessible knowledge and data, clouding analysis and making it difficult to measure progress. Professionals and academics must be aware of the intensity of climate change and that is not possible without concrete data produced by trustworthy sources such as government institutions. This could also result in the misallocation of funds and resources which hinder further progress as policymakers would have a low-resolution picture of the cost of operations. Therefore, organizations like King Abdulaziz City for Science and Technology (KACST), King Abdullah University of Science and Technology (KAUST), King Abdullah Petroleum Studies and Research Center (KAPSARC), King Abdullah City for Atomic and Renewable Energy (KACARE), and others, must increase collaboration, coordination, and integration to make data more readily available both to the government and the public. Moreover, it is not possible to counter climate change solely through national programs, neighboring countries in the Middle East also need to cooperate with the Saudis to collectively deal with the issue, however, that is not always possible due to domestic issues such as civil wars, terrorism, natural disasters, and so on. These issues will jeopardize any efforts toward a sustainable future and further worsen the impact of climate change in the Middle East.
Italian Eni: Energy Transition and Economic Development as Fundamental Pillars of Approach in Africa
Eni, an Italian multinational energy giant headquartered in Rome, in its latest 2022 report has outlined the main outcomes and objectives in the energy transition pathways for a number of African countries. It described Eni’s contribution to a just transition that ensures access to efficient and sustainable energy, sharing the social and economic benefits of the path towards net zero emissions by 2050 with employees, suppliers, communities, and customers with an inclusive and transparent approach.
“In addressing the challenges in the energy sector that Eni faces, we keep our priorities firmly on track with an ongoing commitment to promote energy access, local development, and environmental protection,” said Claudio Descalzi, Eni’s Chief Executive Officer.
She explained that the success of Eni’s strategy could not be achieved without collaboration with key stakeholders, from private individuals to the public sector, international organizations, civil society associations, and research institutes. “Today, more than ever, it is necessary to pool resources and human capital, through a broad vision that allows us to align our common goals, to reduce geographical gaps and promote global human progress,” said Claudio Descalzi.
With regards to the carbon neutrality strategy, Eni remained firm in its commitments towards net zero emissions by 2050 and confirmed all its decarbonization targets, which are anchored on sound investments.
The company achieved a 17% reduction in Scope 1, 2 and 3 emissions, compared to 2018 levels, and continued implementing the necessary measures to achieve Scope 1 and 2 net zero emissions in the Upstream by 2030, by investing in emission-reduction technologies and developing low-carbon projects. In this context, in 2023, Eni launched the FPSO that will be used for production from the Baleine field in Côte d’Ivoire, the most important discovery ever made in the country and the first net zero development for Scope 1 and 2 emissions in Africa.
In Eni’s strategy, the United Nations Sustainable Development Goals are a fundamental reference for conducting activities in the countries of operations. Agri-business projects, for example, embodies the fundamental pillars of Eni approach for the just transition, an energy transition with a strong innovative component combined with a concrete focus on the social dimension.
In this context, Eni is committed to ensure that the decarbonization process offers opportunities to convert existing activities and develop new production chains with significant perspectives in the countries where it operates.
In 2022, the first cargo of vegetable oil produced in Kenya not competing with the food production chain, from waste and raw materials produced on degraded land, was delivered to Eni’s biorefining plant in Gela, with substantial positive impacts on employment and local development. The model will be replicated in other countries.
To achieve a just transition, particular attention was paid to initiatives to promote access to energy and education in the countries of operation. These include the projects in Côte d’Ivoire, Mozambique, and Ghana to facilitate access to clean cooking.
In Côte d’Ivoire, more than 20,000 cooking stoves were distributed in just six months, reaching more than 100,000 beneficiaries. Eni has promoted the right to education in Congo, Ghana, Iraq, Mexico, Mozambique, and Egypt, where it opened the Zohr Applied Technology School to significantly increase the number of youths with upgraded technical and professional skills in the energy and technology fields.
With revenues of around €92.2 billion, Eni ranked 111th on both the Fortune Global 500 and the Forbes Global 2000 in 2022, making it the third-largest Italian company on the Fortune list (after Assicurazioni Generali and Enel) and second largest on the Forbes list (after Enel). Per the Fortune Global 500, Eni is the largest petroleum company in Italy, the second largest based in the European Union (after TotalEnergies), and the 13th largest in the world.
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