Eni Signs MOU with Zhejian Energy
Eni (NYSE: E) and Zhejiang Energy have signed a Memorandum of Understanding (MoU) on strategic cooperation in the energy sector, Eni has revealed in a statement posted on its website.
The MoU establishes a cooperation framework aimed at facilitating joint initiatives between Eni and Zhejiang Energy across the gas and LNG value chain in China and internationally, Eni noted, adding that the agreement builds on the companies’ shared goal of promoting a reduction in emissions by favoring a switch from coal to gas in the production of electricity. Initiatives identified in the MoU are said to range from developing a long term LNG supply agreement to joint participation in gas/LNG projects.
“Using gas to produce electricity instead of coal reduces by as much as half the greenhouse gas emissions of a power plant, providing an immediate step forward in decarbonizing the sector,” Eni said in a company statement.
“For Eni, the MoU represents a further step in the energy transition process. The company has recently launched a new strategy, which will lead the company to be carbon neutral by 2050, in all its operations, processes and products,” Eni added in the statement.
“In the long term, gas – which will be increasingly decarbonized – will represent more than 90 percent of Eni’s production,” Eni went on to state.
Eni, which has been present in China since 1984, recently established a new representative office in the country in Beijing. In December last year, Eni revealed that it had signed an MoU on cooperation with the People’s Republic of China. The agreement between Eni and the International Cooperation Center of the National Development and Reform Commission (ICC-NDRC) promoted the collaboration between Eni and Chinese energy players, Eni said in a statement posted on its website back in December.
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