finance
Eni Explores Deal on Floating LNG Assets to Raise at Least €1 Billion
Eni has hired Morgan Stanley to explore a potential transaction involving its floating LNG operations. The structure would allow outside investors to provide capital tied to cash flows from those assets while Eni retains control. Reuters reported the early-stage discussions with infrastructure investors including Apollo, KKR and Stonepeak.
May 12, 12:30 PM·1m read1 source
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Eni has hired Morgan Stanley to explore a potential deal involving its floating LNG assets, Reuters reported Tuesday. The Italian energy company is in early-stage discussions with infrastructure investors including Apollo, KKR and Stonepeak. The transaction under consideration would create a vehicle that allows outside investors to inject capital linked to cash flows from Eni’s floating LNG operations.
The deal could raise at least €1 billion for Eni. The company would retain control of the underlying business under the reported structure. Eni operates FLNG units offshore Mozambique and Congo and is planning additional deployments in Mozambique.
LNG markets face pressure from the Iran war and disruptions around the Strait of Hormuz. The situation has prompted Europe and Asia to compete more aggressively for available cargoes. Floating LNG assets have gained appeal because they can monetize offshore gas more quickly and with fewer geopolitical constraints than land-based export terminals.
Eni holds one of the more established floating LNG portfolios among European energy companies. Its existing operations and expansion plans position it to benefit from heightened interest in FLNG technology. The company is seeking to generate additional cash from these assets without relinquishing operational control.
The discussions remain at an early stage and no final decisions have been made. Any transaction would require further negotiations with potential investors approached by Morgan Stanley.
