Eni S.p.A. (E): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear map of Eni S.p.A.'s operating environment-the PESTLE view-to ground your investment thesis in late 2025 data. The direct takeaway is that Eni is successfully executing a dual strategy, using strong cash flow from traditional assets to fund a rapid, monetized transition via its satellite model, but still faces significant geopolitical and regulatory headwinds in Europe.

Political Forces: Geopolitics and State Influence

The political landscape for Eni S.p.A. is dominated by two forces: European policy and Italian state ownership. EU policy is moving toward a 'Clean Industrial Deal,' which favors industrial competitiveness over rapid, costly regulation. This gives Eni some breathing room, but the political pushback against the European Green Deal still creates regulatory uncertainty for long-term transition investments.

Geopolitical risk is not just theoretical; it drives the core strategy. Eni is focused on securing non-Russian gas supply, notably from Algeria and Egypt. Plus, the Italian state holds around 30% of the company, meaning domestic policy influence and national energy security mandates will always play a heavy hand in major strategic decisions. It's a national champion, so its moves are never purely commercial.

Economic Outlook: Cash Flow and Capital Discipline

Honesty, the 2025 economic picture is strong, showing financial discipline. The full-year Cash Flow from Operations (CFFO) is forecast at a robust €12 billion, which is up from earlier guidance. That's a powerful engine for the transition.

Management has also kept capital expenditure (Capex) tight, reducing it to below €5 billion for 2025. This financial discipline, combined with stable oil and gas production expected at 1.71-1.72 million boe/d, helps offset price volatility. Shareholder returns are defintely a priority: you're looking at a €1.05 per share dividend and a €1.8 billion buyback program for 2025. The satellite business model, like KKR's investment in Enilive, is realizing significant, monetized value.

Sociological Factors: The 'Just Transition' Challenge

Eni S.p.A. is navigating the tricky social waters of a 'Just Transition'-balancing decarbonization goals with local economic and social stability. The company faces ongoing public pressure because its dual strategy still requires investing in new hydrocarbon exploration. It's hard to please everyone when you're both an energy giant and a transition leader.

To be fair, community investment is a critical part of their strategy, particularly in operating countries in Africa, where they link social goals like promoting local skills and addressing energy poverty directly to business expansion. This approach aims to make the energy transition an inclusive one, not just a European one.

Technological Momentum: Monetizing Innovation

Technology is where Eni S.p.A. is turning risk into a monetizable opportunity via its satellite model. They are launching a new dedicated Carbon Capture and Storage (CCS) satellite company in 2025 to commercialize this hard-to-abate solution. This separates the high-growth, low-carbon assets from the legacy business.

The transition is also visible in their core operations:

• Biorefining is transforming conventional refineries to produce sustainable mobility fuels through Enilive.
• Plenitude, the renewables arm, is targeting 5.5 GW of installed capacity by year-end 2025-a substantial 34% year-on-year increase.
• Investment via Eni Next targets breakthrough innovations like nuclear fusion and long-duration storage.

They are not just talking about innovation; they are funding it and spinning it out for valuation.

Legal and Regulatory Hurdles

The legal environment is complex, especially within the EU. Near-term focus is on compliance with the EU Methane Regulation, building on the Gold Standard reporting achieved in 2023. But the bigger headache is navigating evolving EU taxonomy rules (the classification system for environmentally sustainable economic activities) for gas and low-carbon investments, which directly affects funding access for projects like Plenitude.

Also, new legal frameworks for CO2 transportation and storage are being developed by the EU, directly impacting the rollout of the new CCS satellite. Internationally, operating in dozens of countries means the company must manage complex local content and anti-corruption laws, demanding robust governance. This is a high-stakes compliance game.

Environmental Milestones and Trade-offs

Eni S.p.A. is hitting critical environmental milestones this year. They are targeting a -65% reduction in net Scope 1+2 greenhouse gas emissions by 2025 versus the 2018 baseline. Also, achieving zero routine flaring in operated assets by 2025 is a critical operational goal. That's a tangible, immediate impact.

The Ravenna CCS project's Phase 1 is already capturing 25,000 tonnes of CO2 annually, with plans for a major expansion. What this estimate hides, though, is the reliance on gas: the long-term strategy relies on progressively increasing the share of gas in production to over 60% by 2030, positioning it as a lower-carbon bridge fuel. This trade-off is the core environmental debate for the next decade.

Next Action: Model the impact of a 10% delay in Plenitude's 2025 capacity target against the €12 billion CFFO forecast to stress-test the transition funding. Owner: Portfolio Analyst.

Eni S.p.A. (E) - PESTLE Analysis: Political factors

EU policy is shifting toward a 'Clean Industrial Deal' favoring competitiveness over rapid regulation

You need to understand that the European Union's (EU) policy focus has fundamentally shifted from the rapid, regulation-heavy approach of the initial European Green Deal to a new 'Clean Industrial Deal' (CID). This change, formalized in February 2025, prioritizes industrial competitiveness and energy affordability over the speed of the transition.

This is a big deal for Eni S.p.A. (Eni) because the new framework is more technology-neutral. It means the EU is less likely to penalize gas as a 'transition fuel' as aggressively as before, which helps Eni's core business. The European Commission has proposed making €100 billion available to support EU-made clean manufacturing, plus it intends to simplify permitting for energy infrastructure and storage projects. That's a clear signal: they want to build things, not just regulate them.

Geopolitical risk drives core strategy, focusing on securing non-Russian gas supply from Algeria and Egypt

Geopolitical instability, especially the need to replace Russian gas volumes, is the single biggest political driver of Eni's capital allocation right now. The company's strategy is directly aligned with the Italian government's 'Mattei Plan,' which aims to position Italy as a key energy hub for Europe by strengthening ties with North Africa.

This political alignment translates into huge, concrete investment commitments. Eni plans to invest approximately €24 billion (or $26.24 billion) across Algeria, Libya, and Egypt over the next four years to boost energy production and secure supply for Europe. Specifically in Egypt, Eni is drilling new wells at the Zohr field, earmarking an investment of $360 million to boost output by an estimated 149 million cubic feet/day (bcfd) by the end of May 2025. This isn't just talk; it's a massive, politically-mandated capital expenditure.

Here's the quick math on the near-term supply focus:

Italian state ownership introduces domestic policy influence and energy security mandates

Eni is not a pure private-sector play. The Italian state holds a significant stake, which gives the government de facto control and means Eni's strategy must always align with Italy's national interests, especially energy security. As of May 2025, the total shares held by the Ministry of Economy and Finance and Cassa Depositi e Prestiti S.p.A. (CDP S.p.A.) is a combined 31.835% of the share capital. That's a powerful minority stake.

This ownership structure means Eni operates with a dual mandate:

• Maximize shareholder return, and
• Serve as a primary instrument of Italian energy and foreign policy.

So, when the government needs to secure gas from a new source to keep the lights on, Eni is the company that gets the call, even if the economics are slightly less favorable than other options. This political backing is a strategic asset but also a constraint.

Political pushback against the European Green Deal creates regulatory uncertainty for long-term transition investments

The political mood across Europe has soured on the pace of climate regulation, creating a new layer of regulatory uncertainty (or 'policy risk') for Eni's long-term transition businesses like Plenitude and Enilive. The pushback, driven by concerns over industrial competitiveness and rising costs, is manifesting in a fast-track deregulation drive.

This deregulation includes 'Omnibus packages' starting in 2025, which aim to simplify and potentially water down key sustainable finance rules. Specifically, regulations like the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) are under pressure to be streamlined. Honsetly, this flip-flopping undermines business confidence. Companies like Eni, which have already invested millions in compliance and transition projects, now face a less predictable regulatory landscape for their low-carbon segments. This makes the return on investment for long-term clean energy projects more defintely opaque.

Eni S.p.A. (E) - PESTLE Analysis: Economic factors

You need to see the economic reality of a major energy company like Eni S.p.A. not just in terms of oil prices, but through its capital structure and strategic cash generation. The key takeaway for 2025 is that Eni has successfully insulated its financial framework from commodity price swings by raising its cash flow outlook and aggressively realizing value from its new 'satellite' businesses.

Full-year 2025 Cash Flow from Operations (CFFO) is forecast at €12 billion, up from earlier guidance.

The company's ability to generate cash remains robust, which is a defintely strong signal to the market. Eni has twice raised its expected adjusted Cash Flow from Operations (CFFO) before working capital adjustments for the full year 2025, reaching a forecast of €12 billion as of the third quarter update. This represents a substantial underlying improvement of €1.3 billion on the original guidance for the year, showing that operational efficiencies and portfolio optimization are paying off even amid a mixed commodity and currency scenario.

Here's the quick math on the CFFO revisions:

• Initial 2025 CFFO Guidance: €13 billion (at a higher Brent price assumption)
• Revised Q1 2025 Guidance: €11 billion (following a revised, lower Brent price assumption)
• Revised Q2 2025 Guidance: €11.5 billion
• Latest Q3 2025 Guidance: €12 billion

Net capital expenditure (Capex) was reduced to below €6 billion for 2025, demonstrating financial discipline.

Eni is showing real capital discipline, which is what we want to see in a high-volatility sector. The company's response to macroeconomic headwinds, including a lower Brent crude price assumption (revised from $75/bbl to $65/bbl), was to tighten its belt. The full-year net capital expenditure (Capex) guidance was reduced to below €6 billion, down from the initial range of €6.5-7 billion. This reduction, alongside other mitigation measures, is expected to offset over €2 billion in negative scenario effects, proving that financial flexibility is built into the model.

The satellite business model has realized significant value, including KKR's investment in Enilive.

The strategy of creating focused, financially independent 'satellite' companies is a major economic driver, effectively unlocking hidden value from the energy transition businesses. The most concrete example is the partnership with KKR (Kohlberg Kravis Roberts & Co. Inc.). KKR acquired a 30% stake in Enilive, the sustainable mobility business, through a series of transactions in 2025. This deal confirmed a post-money Equity Value for 100% of Enilive at a stunning €11.75 billion. Overall, Eni has realized approximately €5.8 billion in cash from third-party investments into its transition businesses, Enilive and Plenitude, through this model.

This is how Eni is financing the future without overleveraging the core business.

Shareholder returns are strong, with a €1.05 per share dividend and a €1.8 billion buyback program for 2025.

The economic health is directly translating into enhanced shareholder value. Eni confirmed a 2025 annual dividend of €1.05 per share, which is a 5% increase compared to 2024. More importantly, the share buyback program was increased by 20% in Q3 2025, now totaling €1.8 billion. This increased payout reflects the company's confidence in its CFFO outlook and its commitment to distribute 35-40% of its annual CFFO to shareholders via a combination of dividends and buybacks.

Oil and gas production is expected to be 1.71-1.72 million boe/d, offsetting price volatility.

Operational stability is the bedrock of the financial performance. The company raised its full-year oil and gas production guidance to a range of 1.71-1.72 million barrels of oil equivalent per day (boe/d). This consistent and growing production, driven by accelerated project start-ups in places like Congo (Brazzaville) and the UAE, provides a crucial buffer against the kind of crude price volatility (like the revised $65/bbl Brent assumption) that can derail less diversified energy companies.

Finance: Track the Q4 2025 CFFO actuals and the final net capex figure by the end of January 2026.

Eni S.p.A. (E) - PESTLE Analysis: Social factors

Sociological

You're looking at Eni S.p.A. and trying to square their ambitious climate goals with their continued oil and gas investments, and honestly, that tension is the core social factor. Eni calls this balancing act a 'Just Transition' strategy, and it's a critical lens for investors and stakeholders. The company is trying to manage the social fallout of decarbonization-like job losses in legacy industries-while simultaneously addressing the energy access needs of developing nations, especially in Africa. It's a high-wire act, but one that is defintely measurable.

The company's approach to a Just Transition is focused on maintaining industrial intensity and protecting human capital. For example, their model estimates that for every €1 million invested in Italy, it generates a €2 million increase in national economic production. This shows their thinking: the transition must create new economic value to offset the structural decline in older sectors. That's a clear, tangible metric for social stability.

Eni is actively pursuing a 'Just Transition' strategy, balancing decarbonization with local economic and social stability.

Eni's 'Just Transition' strategy is less about a rapid, all-in pivot and more about a managed, socially equitable evolution. They frame it as a way to ensure the decarbonization process shares social and economic benefits across their workforce, value chain, and operating communities.

Their industrial restructuring plans, like the transformation of their chemical business Versalis, involve a €2 billion investment through 2029. This is aimed at reducing emissions by approximately 1 million tons of CO2 (about 40% of Versalis' current emissions in Italy) while also having positive implications for employment through retraining and repositioning personnel. Here's the quick math: they are spending big to cut emissions and save jobs, not just cut jobs to save costs.

The company faces ongoing public pressure regarding its dual strategy, which continues to invest in new hydrocarbon exploration.

This is the most significant social risk. Eni's dual strategy-growing gas production alongside renewables-draws heavy criticism from climate-focused NGOs and investors. While the company is pushing its renewables unit, Plenitude, and its biofuels arm, Enilive, the sheer scale of its hydrocarbon commitment is what raises eyebrows.

To be fair, CEO Claudio Descalzi argues the transition must be 'additive, not ideology,' prioritizing energy security and economic stability. Still, the numbers reveal the imbalance that fuels the pressure:

• Planned annual capital expenditure (CAPEX) for renewables (Plenitude) from 2025-2028 was reduced to €1.4 billion per year, a 22% drop from the prior plan.
• The company's oil and gas production in 2030 is projected to be 55% higher than the level required to align with the International Energy Agency's Net Zero Emissions (NZE) scenario.
• Total investment in Algeria, Libya, and Egypt over the next four years is approximately €24 billion (or $26.24 billion) to boost energy production, which is heavily hydrocarbon-focused.

This gap between the 'Just Transition' rhetoric and the capital allocation reality creates persistent reputational risk.

Community investment is a key part of the strategy in operating countries, promoting local skills and development.

Eni's presence in its 21 operating countries is heavily supported by local development projects, with over 100 active initiatives focusing on areas like access to water, energy, and health.

These investments are often linked directly to major resource projects to ensure local benefit and gain a social license to operate. For instance, the $1.5 billion oil investment deal signed in Ghana in September 2025 was explicitly described as a commitment to job creation and supporting Ghana's energy sector growth. In Côte d'Ivoire, a 30-year conservation project, which began with planting 100 hectares in 2025, is expected to benefit over 300,000 people by protecting 14 forests.

Here is a snapshot of recent, concrete social investments tied to local development and skills:

Focus on energy poverty and accessibility remains critical, especially in Africa, linking social goals to business expansion.

The social imperative of energy access in Africa-where an estimated 600 million people still lack electricity-is a key driver for Eni's continued gas expansion. This is where the company's dual strategy finds its strongest social justification: providing reliable, cleaner-burning natural gas to replace biomass for cooking and power generation.

The domestic energy demand in North African countries is rising at an average of 7% to 8% every year due to demographic growth, which necessitates significant investment in gas infrastructure. Eni's strategy directly addresses this need. Furthermore, their Clean Cooking program, which aims to reduce reliance on polluting fuels, has already reached 750,000 people through the distribution of improved cookstoves. This links a clear social goal-reducing health impacts from indoor air pollution-to their broader business presence on the continent.

Eni S.p.A. (E) - PESTLE Analysis: Technological factors

A new dedicated Carbon Capture and Storage (CCS) satellite company is launching in 2025 to monetize this hard-to-abate solution.

You're seeing Eni S.p.A. make a decisive move to commercialize its Carbon Capture and Storage (CCS) technology, which is defintely a core solution for decarbonizing hard-to-abate industries like cement and steel. This isn't just an R&D project anymore; it's a new business line, formalized by the launch of the dedicated satellite company, Eni CCUS Holding, in 2025. The satellite model is crucial here because it allows Eni S.p.A. to bring in external, specialized capital and expertise, which accelerates growth.

Here's the quick math on the external validation: In August 2025, BlackRock's Global Infrastructure Partners (GIP) agreed to acquire a 49.99% stake in the new CCS business. This partnership provides significant financial muscle and a clear market valuation signal for a technology that still carries execution risk. Operationally, Eni S.p.A. is already executing, with Phase 1 of the Ravenna CCS project in Italy, a joint venture with Snam, aiming to capture and store 25,000 tonnes of CO2 per year.

Biorefining is a core focus, transforming conventional refineries to produce sustainable mobility fuels via Enilive.

The company is rapidly transforming its traditional refining assets into biorefineries, which is a smart way to repurpose legacy infrastructure for the energy transition. This effort is consolidated under Enilive, another successful satellite company. Enilive is focused on producing high-value biofuels like Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) from biogenic feedstocks, including used cooking oil and animal fats.

The growth trajectory is aggressive. Current biorefining capacity stands at 1.65 million tons per year (Mt/y). The plan is to nearly double this to over 3 Mt/y by 2028 and exceed 5 Mt/y by 2030. The market is already pricing this growth: the 2024 sale of a 25% stake to KKR valued the entire Enilive business at an equity value of €11.75 billion. This business is a significant cash generator, targeting an adjusted pro forma EBITDA of about €1 billion for the 2025 fiscal year.

Plenitude is targeting 5.5 GW of installed renewable capacity by year-end 2025, a substantial 34% year-on-year increase.

Eni S.p.A.'s renewable and retail arm, Plenitude, continues to be a central pillar of its technological shift, focusing on solar, onshore, and offshore wind. The target for installed renewable capacity by the end of 2025 is 5.5 GW. This represents a 37.5% increase over the 4 GW capacity achieved in 2024.

As of September 2025, Plenitude had already reached 4.8 GW of installed capacity. That means they have 0.7 GW of capacity to bring online in the final quarter of the year to hit their target. The company is executing on large projects, including the Renopool photovoltaic plant in Spain, which will be operational by the end of 2025 with a total capacity of 330 MW. The sheer scale of the capacity additions is a clear technological commitment.

Investment in corporate venture capital (Eni Next) targets breakthrough innovations like nuclear fusion and long-duration storage.

The company is looking beyond incremental improvements, using its corporate venture capital arm, Eni Next, to invest in truly disruptive, frontier technologies. This is the long-term hedge against technological obsolescence.

The focus is on technologies that promise to radically change the energy landscape, specifically:

• Magnetic Confinement Nuclear Fusion: Eni Next is a long-standing shareholder in Commonwealth Fusion Systems (CFS). The biggest signal of commitment in 2025 came in September with the signing of a landmark Power Purchase Agreement (PPA) with CFS, valued at over $1 billion, for the offtake of power from CFS's first commercial 400 MW ARC fusion power plant. This moves fusion from a purely scientific pursuit to a commercial opportunity for Eni S.p.A.
• Long-Duration Energy Storage: This is critical for making intermittent renewables like wind and solar reliable. Eni Next has invested in companies like Form Energy and Energy Dome to develop solutions that can store power for days, not just hours.

The strategy is simple: gain early access to breakthrough technology that can accelerate the path to net-zero, and then use Eni S.p.A.'s industrial scale to commercialize it. It's a smart way to manage the risk of a moonshot technology.

Eni S.p.A. (E) - PESTLE Analysis: Legal factors

Compliance with the EU Methane Regulation is a near-term focus, building on the Gold Standard reporting achieved in 2023.

The new EU Methane Regulation, which entered into force in August 2024, is now a primary compliance driver for Eni S.p.A., especially as the rules for monitoring and reporting annual methane emissions data from third countries begin in 2025. This legal push aligns with the company's existing efforts, which saw them achieve the 'Gold Standard Pathway' from the UN's Oil and Gas Methane Partnership 2.0 (OGMP 2.0) in 2023, and then the full 'Gold Standard reporting' in 2024. This is a strong starting position, but the new regulation is a mandate, not a voluntary standard, so compliance is non-negotiable.

Eni already boasts an Upstream methane intensity of 0.06% in 2023, placing it among the sector leaders, but the legal requirement for Leak Detection and Repair (LDAR) programs and the ban on routine venting and flaring will necessitate continuous, verifiable investment across all European and global supply chains. The legal risk here is a potential market split, where non-compliant Liquefied Natural Gas (LNG) could face restricted demand after January 2027. That's a clear financial threat.

The company must navigate evolving EU taxonomy rules for gas and low-carbon investments, which affect funding access.

The EU Taxonomy (a classification system for environmentally sustainable economic activities) is the legal framework dictating which investments are considered 'green' and thus eligible for certain types of financing, like green bonds. For Eni, this creates a tension between its gas-heavy portfolio and its low-carbon ambitions. The technical screening criteria for natural gas-which the EU classifies as a transitional activity-are strict, requiring a clear pathway to displacement of higher-emitting fuels.

This regulatory pressure is visible in their capital allocation. For the 2025-2028 period, Eni plans to invest €1.4 billion in capital expenditure (CAPEX) per year in its renewable energy business, Plenitude, but this is actually a 22% lower target than the company had previously set. Here's the quick math on the investment challenge:

• In 2024, for every €1 invested in the low-carbon Plenitude business, Eni invested €7.7 in oil and gas.

The legal and financial risk is that a perception of insufficient 'green' CAPEX, despite the Taxonomy's inclusion of gas, could limit access to the growing pool of dedicated sustainable finance capital, making their gas projects more reliant on traditional, and potentially more expensive, funding sources.

New legal frameworks for $\text{CO}_2$ transportation and storage are being developed by the EU, directly impacting the CCS satellite's rollout.

The development of Carbon Capture and Storage (CCS) is moving from a technical concept to a legally mandated industrial necessity, driven by the EU's Industrial Carbon Management (ICM) Strategy and the Net-Zero Industry Act (NZIA). This is an opportunity, but it comes with fresh legal obligations.

The European Commission, in May 2025, formally mandated that key oil and gas producers, including Eni, must contribute to developing $\text{CO}_2$ injection capacity. The collective goal is to achieve 50 million metric tons of annual $\text{CO}_2$ injection capacity by 2030. Eni is responding directly to this by launching a new CCS satellite company in 2025, consolidating its projects under a single entity to streamline development and attract third-party emitters. This new entity must navigate the complex, evolving legal landscape for third-party access to pipelines and storage sites, which the existing CCS Directive (2009/31/EC) only partially covers. Eni has already invested around €400 million in CCS projects, such as HyNet in the UK. That's a significant head start.

International operations are subject to complex local content and anti-corruption laws, demanding defintely robust governance.

Operating in over 60 countries means Eni must manage a patchwork of local legal systems, particularly concerning anti-corruption and local content requirements (LCRs). The company's internal controls, like its Anti-Corruption Compliance Program, prohibit all forms of corruption and explicitly ban facilitation payments. However, the legal environment in key African markets is tightening, demanding concrete, measurable compliance.

In Nigeria, the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the new Nigeria First Policy (2025) enforce strict LCRs. Non-compliance can lead to project halts or contract loss. Similarly, in Mozambique, the Coral North FLNG project development plan, approved in April 2025, requires a strong commitment to LCRs, building on the existing Coral South project which has already contributed over \$200 million in revenues to the Mozambican government since production started.

The table below summarizes the key legal compliance metrics in major operating regions for 2025:

Finance: Ensure all new international contracts for the Coral North FLNG project explicitly quantify local content spend and training targets by the end of the next quarter.

Eni S.p.A. (E) - PESTLE Analysis: Environmental factors

Eni is targeting a -65% reduction in net Scope 1+2 greenhouse gas emissions by 2025 (versus 2018 baseline).

You need to know where Eni S.p.A. stands on its direct operational emissions, the ones the company controls most closely (Scope 1 and 2). The headline target is a -65% reduction in net Scope 1+2 GHG life cycle (LC) emissions by the end of 2025, benchmarked against the 2018 baseline.

This is an aggressive, near-term goal. To be fair, achieving this requires a massive acceleration in the final year. As of the end of 2024, the company had already achieved a -37% overall reduction in its net carbon footprint (Scope 1+2) compared to 2018. For the Upstream business alone, the reduction was even steeper, reaching a -55% cut in net Scope 1+2 emissions versus 2018, which actually surpassed its own 2024 target.

Here's the quick math on the 2024 operational footprint. Your total operational GHG emissions (Scope 1 and 2) for 2024 stood at 31,900,000 metric tons of CO2 equivalent (tCO2e). Hitting the -65% target means cutting a substantial amount of CO2e in 2025. It's a tough, but defintely achievable, stretch goal given the 2024 momentum.

The goal of achieving zero routine flaring in operated assets by 2025 is a critical environmental milestone.

The commitment to eliminate routine gas flaring in operated assets by 2025 is a key environmental metric, as flaring is a visible and wasteful source of emissions. Eni S.p.A. is advancing toward this target, which is a major step toward reducing methane emissions-a potent greenhouse gas.

However, this goal is not a clean sweep across the entire portfolio just yet. The target for co-operated assets, where Eni does not have full operational control, is subject to the execution of ongoing projects in Libya and is currently expected to be completed in 2026. This is a crucial distinction for investors and analysts; you must separate the performance of fully controlled assets from joint ventures.

The Ravenna CCS project's Phase 1 is already capturing 25,000 tonnes of CO2 annually, with plans for a major expansion.

Carbon Capture and Storage (CCS) is a vital lever in Eni S.p.A.'s decarbonization strategy, especially for hard-to-abate industrial sectors. The Ravenna CCS project, a joint venture with Snam, is Italy's first offshore CCS initiative. Phase 1, which started in September 2024, is already injecting and permanently storing CO2.

Phase 1 is capturing approximately 25,000 tonnes of CO2 per year (or 0.025 Mt/year) from Eni's Casalborsetti natural gas treatment plant. This initial phase is a proof-of-concept, already reducing the Casalborsetti plant's CO2 emissions by up to 96% during peak operations.

The real opportunity lies in the scale-up. Phase 2 is planned to allow annual storage of up to 4 Mt of CO2 by 2030, with the ultimate potential for the Ravenna hub reaching up to 16 Mt per year after 2030, leveraging the vast storage capacity of the depleted gas fields in the Adriatic Sea.

The strategy relies on progressively increasing the share of gas in production to over 60% by 2030 as a lower-carbon bridge fuel.

Eni S.p.A.'s transition strategy acknowledges that natural gas (including condensates) is a necessary bridge fuel to displace higher-carbon energy sources in the near term. This is why the company is actively re-weighting its upstream portfolio.

The plan is to progressively increase the share of gas in total hydrocarbon production to over 60% by 2030. This shift is supported by strategic moves, such as the acquisition of Neptune Energy, which is a gas-focused independent, and the start of LNG production in Congo. This focus allows Eni to grow production (underlying production is expected to grow by 3-4% per annum to 2028) while simultaneously managing its overall carbon intensity.

The reliance on gas is a dual-edged sword: it offers a lower-carbon solution than oil, but it still ties the company to fossil fuel production for the next decade. The company's long-term goal is to increase the gas share to 90% beyond 2040. This is the core of their energy mix evolution.

• Gas share target: Over 60% of production by 2030.
• Upstream production growth: 3-4% annually through 2028.
• Long-term gas goal: Over 90% of production beyond 2040.