Italian energy conglomerate Eni has engaged Morgan Stanley to facilitate fundraising from investment firms such as Apollo, KKR, and Stonepeak, in a potential transaction backed by its floating liquefied natural gas (FLNG) assets, according to three informed sources.
The discussions between Eni and these funds are at a preliminary stage, and the outcome remains uncertain, the sources noted cautiously. One source indicated that any prospective deal is expected to generate at least €1 billion for Eni.
This move aligns with Eni's broader strategy of leveraging investments from infrastructure funds to free up capital for new projects.
One structure under consideration involves the infrastructure funds providing initial capital to a special purpose vehicle, which would then be entitled to receive payments from the FLNG assets, the sources added.
Apollo, Eni, KKR, Morgan Stanley, and Stonepeak all declined to comment.
The negotiations come as Europe and Asia compete for LNG cargoes in the global market, with supply disruptions exacerbated by the conflict in Iran. Eni has built significant expertise in establishing and operating floating units, including three FLNG facilities that process and liquefy natural gas from offshore fields in Mozambique and Congo for export.
Eni plans to deploy another FLNG platform in Mozambique, a project that could exceed $7 billion in cost, and aims to install two platforms in Argentina for state-owned oil company YPF by 2030.
Another source noted that the assets at the center of the deal would allow investors to gain exposure beyond Africa and the Middle East, providing diversification from regions still heavily impacted by the Iran conflict.
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