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Eni (E) Begins Gas Production From Major Argo Cassiopea Project

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Eni SpA (E - Free Report) , an Italian energy giant, has commenced gas production from the Argo Cassiopea field, a major gas development project in Italy. Located in the Strait of Sicily, the field is expected to contribute to Italy's energy supply significantly.

Production Details

The company reported that initial test production has begun from one of its four subsea wells that were drilled over the past few months. Eni expects the remaining wells and their associated infrastructure to be gradually brought online, tested and fully commissioned in the upcoming months.

The gas is being extracted from one of the four subsea wells that have been drilled recently in the region. It is then transported via a 60 km subsea pipeline to the Gela processing plant. After processing, the gas is integrated into the national grid, reinforcing Italy's energy security.

Environmental Impact and Emissions

Eni has ensured that the production process is environmentally sustainable. All operations are conducted underwater, minimizing visual impact and maintaining near-zero emissions. Additionally, a 3.6 MWp photovoltaic panel installation has been dedicated to achieving carbon neutrality for the project’s Scope 1 and 2 emissions.

Strategic Importance

The Argo Cassiopea project, which Eni operates in partnership with Energean, underscores Eni's strategy to boost the use of domestic natural gas. The field's reserves are estimated to be approximately 10 billion cubic meters of gas, with peak production expected to reach 1.5 billion cubic meters annually. This development not only strengthens Italy's energy independence but also aligns with Eni's low-emission goals.

This development is a key component of Eni's efforts to provide a low-emission energy source for the country.

Zacks Rank & Key Picks

E currently has a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and The Williams Companies carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.

MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.

The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.

The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.80. The company has witnessed upward earnings estimate revisions for 2025 in the past seven days.


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