Eni SpA E, the Italian energy giant, is making strides in decarbonizing liquefied natural gas (LNG) and enhancing its gas ties with Japan. The company recently joined a global decarbonization initiative while signing a strategic agreement with Japan's government agency, the Japan Organization for Metals and Energy Security (“JOGMEC”). This move was a result of Eni aiming to balance its energy transition efforts with growing LNG demand.
Eni has become a member of the Coalition for LNG Emission Abatement toward Net Zero (CLEAN Initiative), a platform that promotes reduction of greenhouse gas (GHG) emissions from LNG production. The company aims to share best practices to curb emissions across the entire LNG value chain by collaborating with major LNG importers from Japan and South Korea. Tokyo and Seoul, among the world’s largest LNG importers, have backed the initiative, reflecting their commitment to the global decarbonization movement.
In a bid to diversify gas and LNG supply sources, Eni has signed a Memorandum of Understanding (MoU) with JOGMEC. The agreement seeks to enhance cooperation in the gas and LNG sectors while contributing to the broader goal of carbon neutrality. This partnership aligns with Japan's strategy to secure a stable energy supply while meeting its decarbonization objectives. Eni’s involvement strengthens its position as a key player in the global energy transition, with LNG playing a pivotal role in this journey.
One of the key highlights of Eni’s collaboration with Japan is the access it provides to Mozambique’s Rovuma supergiant gas basin, one of the largest gas discoveries in recent years. Through the Area 4 concession, which includes the Coral Sul Floating LNG (FLNG) facility, Japan will benefit from the production and export of LNG. The upcoming Coral North and Rovuma onshore LNG projects, expected to be sanctioned in 2024/2025, should further increase LNG output, with Eni playing a leading role in upstream operations.
Eni's participation in the CLEAN Initiative and its strengthened partnership with Japan highlight the company’s commitment to reducing emissions while fostering global LNG supply chains. As LNG continues to play a vital role in the energy transition, Eni’s efforts in Mozambique and its collaboration with Japan will be crucial in supporting energy security and carbon neutrality objectives.
E currently has a Zack Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked stocks like PEDEVCO Corp. PED, Archrock Inc. AROC and Core Laboratories Inc. CLB. While PEDEVCO and Archrock sport a Zacks Rank #1 (Strong Buy) each, Core Laboratories carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations.
The Zacks Consensus Estimate for PED’s 2024 EPS is pegged at $0.08. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.
Archrock is an energy infrastructure company based in the United States, focusing on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.04. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
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