Eni, UAE’s Mubadala to partner in hydrogen, CCUS projects amid Middle East energy transition push

Eni and the UAE’s Mubadala Petroleum, partners in the giant Zohr gas field in Egyptian waters, plan to cooperate in hydrogen and carbon capture, utilization and storage projects as part of their energy transition push.

The two companies signed a memorandum of understanding to explore cooperation in the field of energy transition and look for potential joint opportunities in the Middle East, North Africa, South East Asia, Europe and other regions of mutual interest, they said in two separate statements on Sept. 7.

Eni aims to have a net zero carbon footprint for scope 1 and 2 emissions from upstream activities by 2030 and from all group activities by 2040 as part of plans to reach its net-zero target on GHG lifecycle emissions scope 1, 2 and 3 by 2050 with full decarbonization of products and operations.

Eni has been boosting investments in the clean energy space, with CO2 capture and storage projects in the UK, delivering carbon-neutral LNG cargos, developing new solar power capacity in Spain and France and constructing renewable energy projects in countries such as Norway, Kazakhstan and Angola.

Eni signed an MOU with Germany’s Uniper, owner of the Connah’s Quay power station in Flintshire, North Wales, on plans to capture CO2 emissions for sequestration in nearby depleted gas fields, part of the Hynet North West carbon capture and hydrogen project, it said June 30.

Gas assets

Eni has been growing its presence in the wider North Sea region in recent years, with CCS and wind projects supplementing offshore oil and gas operations that extend as far as the Barents Sea off the coasts of Norway and Russia.

Mubadala Petroleum, a unit of Abu Dhabi sovereign wealth fund Mubadala Investment Co., is focusing on the development of gas fields, with its asset base reaching almost two-thirds natural gas, while reducing GHG emissions by 25% in the last three years, it said in its statement.

Among Mubadala’s gas assets is a 10% stake in the Shorouk concession offshore Egypt, which contains the supergiant Zohr gas field that was discovered by Eni and is operated by the Italian company.

Israel’s Delek Drilling said Sept. 2 it had agreed to sell its 22% stake in the Tamar gas field offshore Israel to Mubadala Petroleum as it shifts its focus to the expansion of the giant Leviathan field.

Delek and Mubadala signed a non-binding memorandum on the sale on April 26 and the $1.025 billion deal has now been formally agreed.

Source: S&P Global.

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