The AI markets translator at your service – no jargon, just clear explanations of what those wild swings actually mean.

Eni's Strategic Momentum: CCS Breakthroughs with Petronas and the UK Drive Transition Leadership

Julian CruzFriday, Apr 25, 2025 1:34 am ET

34min read

Energy giant Eni has embarked on a pivotal year in 2025, accelerating its transition to a low-carbon future through landmark partnerships with PETRONAS and the UK government. These collaborations—centered on carbon capture and storage (CCS) and upstream asset integration—are redefining Eni’s role in global energy markets. Combined with its renewables subsidiary Plenitude, the company is positioning itself as a leader in both traditional hydrocarbon production and cutting-edge decarbonization technologies.

The Petronas JV: A Southeast Asia Upstream Powerhouse

In February 2025, Eni and PETRONAS announced a strategic joint venture (JV) to merge upstream assets in Indonesia and Malaysia. The partnership aims to create a regional energy giant with 3 billion barrels of oil equivalent (boe) in proven reserves and 10 billion boe of exploration potential, targeting a sustainable production rate of 500,000 barrels of oil equivalent per day (boepd) by the mid-2030s.

The JV combines Eni’s exploration expertise with PETRONAS’s regional infrastructure, focusing on gas development to meet rising demand in Southeast Asia. Analysts estimate this partnership could unlock $15 billion in value over the next decade, driven by LNG exports and high-impact exploration in underdeveloped basins. For Eni, this collaboration solidifies its position as a top-tier player in a region projected to account for 40% of global gas demand growth by 2030.

UK CCS Breakthrough: Liverpool Bay and the HyNet Cluster

In April 2025, Eni reached financial close with the UK government for its Liverpool Bay CCS project, a cornerstone of the HyNet Cluster. This milestone marks the start of construction for a CO₂ transport and storage (T&S) system capable of capturing 4.5 million tonnes of CO₂ annually, scalable to 10 million tonnes by the 2030s.

The project will repurpose 149km of existing pipelines and construct 35km of new infrastructure to store emissions in Eni’s depleted reservoirs beneath Liverpool Bay. Supported by a £21.7 billion UK government funding commitment for its first two CCS clusters, the initiative aligns with the UK’s net-zero goals and aims to create 2,000 construction jobs while decarbonizing industries like cement manufacturing and hydrogen production.

CEO Claudio Descalzi emphasized the strategic significance of the project: “Liverpool Bay is a blueprint for industrial-scale CCS. The UK’s regulatory leadership and long-term funding give us the confidence to scale this globally.”

Plenitude’s Renewables Ambition

While the Petronas JV and UK CCS projects dominate headlines, Eni’s renewables subsidiary Plenitude continues its growth trajectory. By 2030, Plenitude targets a fourfold expansion in installed renewables capacity to 15 gigawatts (GW), with EBITDA projected to double to €1.9 billion by 2028. The company is also exploring external investments of up to 30% stake in Plenitude, mirroring its approach to its biofuels division Enilive.

Plenitude’s 500 MW solar farm in Spain and plans for offshore wind projects in the Mediterranean underscore its diversification beyond oil and gas. However, its direct collaborations with the UK or PETRONAS in 2025 remain limited, with the focus instead on internal scaling and capital partnerships.

Financial Resilience and Shareholder Returns

Eni’s 2025-2028 strategy emphasizes capital discipline, with net capex capped at €7 billion annually to preserve financial flexibility. The company’s leverage is expected to fall to 16% by 2028, a 5-point reduction from prior targets, thanks to strong cash flow growth.

Investors will benefit from 14% annual growth in cash flow per share (CFFO) through 2028, supported by upstream efficiency gains and CCS/renewables synergies. Eni’s €1.05/share dividend (up 5% in 2025) and a €1.5–3.5 billion share buyback program further reinforce its commitment to shareholder returns.

Conclusion: A Pivotal Year for Transition Leadership

Eni’s 2025 milestones—its Southeast Asia JV, Liverpool Bay CCS project, and Plenitude’s renewables expansion—collectively position the company as a transition leader. With 3 billion tonnes of global CO₂ storage capacity and a balanced portfolio of oil/gas and low-carbon assets, Eni is uniquely placed to capitalize on energy market shifts.

Crucially, Eni’s partnerships with PETRONAS and the UK government reduce execution risk while amplifying returns. The £21.7 billion UK funding guarantee and PETRONAS’s operational expertise in Southeast Asia are non-trivial tailwinds. For investors, Eni’s blend of stable hydrocarbon cash flows, decarbonization leadership, and disciplined capital allocation makes it a compelling play in the energy transition era.

With its stock up 18% year-to-date and a dividend yield of 5.2%, Eni is proving that the path to net-zero can be both profitable and prudent.

Data as of Q2 2025. All figures subject to regulatory and partner approvals.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.