Eni SPA has signed an agreement with Kazakhstan’s KazMunayGas (KMG) to build a 250 megawatt (MW) hybrid gas and renewable power plant in Kazakhstan’s Zhanaozen region, Mangystau, the Italian state-owned energy company said on Thursday.
The hybrid power plant will be the first of its kind in the Central Asian nation, Eni said in a press release. The project will include a solar power plant, a wind power plant and a gas power plant for the production and supply of stable, low-carbon electricity to KMG’s subsidiaries in the area. The hybrid model helps diversify and decarbonize the energy supply for the oil and gas assets in the Mangystau region, as well as contributing to the development of human capital in the renewable energy sector, Eni said.
“Eni is firmly committed to strengthening its leadership in Kazakhstan’s energy transition, accelerating the evolution of its business model. The project we announced today marks a further step towards the growth of Eni’s renewable generation capacity, while supporting Kazakhstan’s decarbonisation path,” said Eni CEO Claudio Descalzi.
The hybrid plant project highlights different technologies, including modern renewable energy plants developed by Eni subsidiary Plenitude in cooperation with KMG, and gas-fired power plants to balance capacity, according to the statement.
The deal announcement followed a meeting between Eni’s CEO and Kazakhstan’s President Kassym-Jomart Tokayev in Astana, where they discussed the company’s projects and decarbonisation initiatives in the country Descalzi highlighted Eni’s strategy for gas valorization—the reduction of routine gas twisting during operations—in Karachaganak and Kashagan to meet domestic gas demand, as well as further boost energy transition investments in renewables and bio-food.
Eni said it began operating in Kazakhstan in 1992 as a joint operator of the Karachaganak field and an equity partner in several projects in the northern Caspian Sea, including the giant Kashagan field. Eni is the joint operator, with KMG, in the Abay exploration block. In the Kazakh renewables sector, Eni operates Arm Wind, a subsidiary of Plenitude, with a combined installed capacity and under construction of 150 MW.
Libya Agreement
In a previous press release, Eni said it signed a memorandum of understanding with Libya to study and identify opportunities to reduce greenhouse gas emissions and develop sustainable energy in the country. The signing of the agreement was part of the visit of Libyan Prime Minister Abulhamid Dabaiba to Italy.
According to the terms of the memorandum, Eni will work on the reduction of carbon dioxide emissions by reducing routine gas emissions, fugitive emissions and ventilation, as well as possible projects for the reduction of emissions in the sector difficult to cut down. In addition, new solutions for the development of renewable energy and electrical efficiency initiatives in the country will be evaluated. Finally, the company will work on identifying additional gas resources from existing fields, which will be developed as part of an integrated project for the domestic market and potentially for export.
Eni said it is the leading international gas producer in Libya and has been operating in the country since 1959, with a large portfolio of assets in exploration, production and development. The company produced 1.6 billion cubic feet per day of gas by 2022 and has an 80 percent share of domestic production. The company operates through Mellitah Oil and Gas BV, a 50-50 joint venture with the National Oil Corporation of Libya. Its capital production in 2022 was 165,000 barrels of oil equivalent per day.
At the beginning of the month, Eni signed an agreement for its vegetable fuel HVOlution with the Azimut-Benetti group. The biofuel made from hydrogenated vegetable oil replaces the fossil fuel used in new yacht testing and sea trials by Azimut-Benetti.
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