Eni’s natural gas production declined 10.8% during the second-quarter, on the back of lower output in Libya and the impact of lower gas demand in certain areas.
The Italian major said Thursday its total gas production reached 4.65 billion cubic feet per day (Bcf/d) in the April-June quarter, compared with 5.23 Bcf/d in 2Q19.
The drop was driven by lower liquefied natural gas (LNG) and gas demand, particularly in Egypt, where Eni operates the giant Zohr field. Volumes were partially offset by growth in Nigeria and Kazakhstan, Kallanish Energy reports.
Gas sales reduced 22% year-on-year to 13.92 billion cubic meters (Bcm). In Italy, sales dropped 6% to 9.13 Bcm mainly due to weaker seasonal sales and the impact of the ongoing economic downturn driven by lockdown measures adopted in Italy and Europe to contain the spread of Covid-19.
Sales in the European markets plunged 41% y-o-y to reach 2.89 Bcm, “as result of the challenging demand backdrop” and also following lower gas nominations made by Botas in Turkey and portfolio rationalization initiatives in Germany.
In terms of prices, Eni saw its natural gas prices shrink 31% in the quarter to an average of $3.40 per thousand cubic feet, from $4.90/Mcf in 2Q19.
This post appeared first on Kallanish Energy News.