MOSCOW (MRC) -- Italian oil major Eni is planning to create a division to focus on new energy solutions which could be headed by its CFO, as it steps up preparations for a decarbonised future, reported Reuters with reference to two sources.
Eni’s restructuring plans come as the oil and gas sector faces a collapse in global oil consumption following the coronavirus epidemic and long-term uncertainty over energy demand as governments battle climate change.
The state-controlled group is looking to create the new green division to look after renewables and other clean energy business while keeping oil and gas activity in a separate unit, the sources familiar with the matter said.
Long-time CFO Massimo Mondazzi could be moved across to head up the new division, or part of it, one of the sources said, adding that no final decision had yet been taken. “Mondazzi is going to be head of downstream, chemicals and renewables,” the second source said.
Eni declined to comment.
Eni, headed by veteran oilman Claudio Descalzi, pledged earlier this year to slash its greenhouse gas emissions by 80% in one of the most ambitious clean-up drives in an industry under pressure from investors to go green.
To reach the goal it is looking to have less oil and more gas in its portfolio, build its renewable capacity, convert refineries to bio-fuels and step up forestry and carbon capture projects.
“The restructuring underway is a move that will focus minds and give the market an idea of the actual size of Eni’s green business,” one of the sources said.
The sources said the new division was likely to include the group’s chemical business Versalis, its retail activities and probably refining, though final details had yet to be ironed out.
As MRC informed before, none of the big oil companies currently meet U.N. targets to limit global warming despite the most ambitious targets set by Royal Dutch Shell and Eni .
We also remind that the ongoing transition to low-carbon energy sources may accelerate as economies recover from the impact of the coronavirus crisis, said the head of oil and gas company Royal Dutch Shell in the May statement.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
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