AleAnna, Inc. Kicks Off Production at Longanesi Field

In a significant move for Italy's energy landscape, AleAnna, Inc. has announced the near-term start of production at its Longanesi field. This development is a major milestone for the company, which has been strategically positioning itself as a key player in Europe's transition to sustainable energy. The Longanesi field, located in the Province of Ravenna in Northern Italy, is expected to play a pivotal role in reducing Europe’s natural gas supply gap and strengthening Italy’s energy security.

A Strategic Milestone

The commencement of production at Longanesi aligns perfectly with AleAnna's strategic goals. The field, which contains net recoverable Proved natural gas reserves of 17.3 Bcf, net Probable reserves of 10.6 Bcf, and net Possible reserves of 10.7 Bcf, is characterized by high permeability turbidite reservoirs. This geological feature ensures a predictable and strong EBITDA profile, with moderate decline rates expected over several years. The field's development includes the construction, testing, and commissioning of critical infrastructure, such as wells, pipelines, and facilities, all of which have been successfully completed.

Economic and Environmental Benefits

The economic benefits of AleAnna's investment in the Longanesi field are substantial. The company has signed a multi-year gas sales agreement with Shell Energy Europe Ltd., ensuring a stable revenue stream. This agreement not only provides financial stability but also enhances AleAnna's market position in the European natural gas sector. The partnership with Shell, a leading natural gas, power, and environmental trading company, adds credibility and market presence to AleAnna's operations.

Environmentally, the Longanesi field supports AleAnna's commitment to sustainable energy solutions. The company's focus on renewable natural gas (RNG) and low-carbon natural gas aligns with Europe's goals for a cleaner energy future. AleAnna's RNG portfolio includes over 100 projects, representing approximately €1.1 billion in potential investment. These projects not only reduce carbon emissions but also support local farmers by turning organic waste into carbon-negative power.

Long-Term Impact

Over the next decade, the Longanesi field is expected to have a significant impact on Italy's energy security and Europe's transition to sustainable energy. The field's production capabilities will help address the gap in natural gas supply left by the loss of Russian gas imports, especially during the cold winter season when gas storage levels are critically low. AleAnna's phased development approach underscores its commitment to strengthening Italy's long-term energy security while supporting the global transition to cleaner and more sustainable energy.

Conclusion

AleAnna, Inc.'s announcement of the near-term start of production at the Longanesi field is a testament to the company's strategic vision and commitment to sustainable energy solutions. With a stable revenue stream from its gas sales agreement with Shell Energy Europe Ltd. and a strong focus on RNG, AleAnna is well-positioned to play a pivotal role in Europe's energy transition. As the company continues to develop its portfolio of conventional and renewable natural gas projects, it is poised to enhance Italy's energy security and contribute to a more sustainable future.