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Eni Advances to Build Solar Plants in Tunisia and Pakistan

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Eni SpA (E - Free Report) continues its stride toward reducing carbon emissions. In this regard, the company has started the construction of two new solar photovoltaic projects in Pakistan and Tunisia.


Situated in the Tataouine governorate, the ADAM photovoltaic project has a peak capacity of 5 megawatt (MW). Eni, the operator of ADAM concession, possesses a stake of 25%. The energy produced will be consumed onsite, reducing gas use and cutting about 6.500 tons per year of CO2 equivalent emissions. The solar plant, which is anticipated to be completed by the end of 2019, constitutes part of the cooperation agreement with the state company, Entreprise Tunisienned’ Activites Petrolieres (ETAP).

ETAP actively contributes to the progress of renewable energy projects in the country. The project targets to create a progressive hybrid electricity production system with battery storage devices, in a bid to facilitate competent integration with the existing turbines.

Eni’s presence in Tunisia dates back to 1961, with operations mainly in the Upstream sector. The main areas of operations include the Southern Desert areas and Mediterranean offshore. In the Gas & LNG Power and Marketing sector, Eni manages the Transmed gas pipeline that links Algeria to Italy through Tunisia, and with Refining & Marketing.


The photovoltaic project in Pakistan will be constructed near the Bhit gas field, wherein Eni is the operator with a 40% stake. The plant will have a peak capacity of 10 MW and is projected to produce about 20 gigawatt hours per year. The energy produced will be consumed onsite, reducing gas use and cutting about 140.000 tons per year of CO2 equivalent emissions over the next decade. The project is projected to be completed by October 2019. It intends to incorporate the new photovoltaic project with the existing power generating facility. Once operational, it will facilitate the shutdown of one of the existing gas turbines and consequently result in lower operational costs.

Eni has been present in Pakistan since 2000 and operates in the upstream sector, with operatorship permits in Bhit/Bhadra and Kadanwari, holding respective interests of 40% and 18.42%. Other concessions wherein Eni has holdings are Latif, Sawan, Zamzama and Miano, holding respective stakes of 33.3%, 23.68%, 17.75% and 15.16%. Currently, Eni is operating in the Pakistani offshore and is active in the Midstream sector.

Both the projects will support exploration and production activities, as well as simultaneously provide green energy with an off-grid set up. The projects help Eni to strengthen its position — both technically and economically — by adding extra value to its traditional operations.

Zacks Rank & Key Picks

Eni currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector can opt for some better-ranked stocks as given below.

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SEACOR Holdings, Inc. (CKH - Free Report) is a diversified holding company, which is mainly focused on domestic and international transportation, logistics, as well as risk management consultancy. The company delivered average positive earnings surprise of 49.6% in the trailing four quarters. The stock currently has a Zacks Rank #2 (Buy).

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