Eni’s Gas & Power segment engages in all phases of the natural gas value chain: supply, trading and marketing of natural gas and electricity, gas infrastructures, and LNG supply and marketing. This segment also includes power generation activity, ancillary to the marketing of electricity.
Eni’s leading position in the European gas market is ensured by a set of competitive advantages, including our multi-Country approach, long-term gas availability, access to infrastructures, market knowledge and a strong customer base. Furthermore, integration with our upstream operations provides valuable growth options whereby the Company targets to monetize its large gas reserves.
The European gas market is currently experiencing a challenging outlook due to oversupply and increased competitive pressures. Weak sector specific fundamentals have dragged down gas spot prices at continental hubs so that they have fallen below the level of gas prices based on oil-linked formulas at which Eni and other gas operators purchase gas under long-term contracts.
In order to face this scenario, Eni implemented new pricing and risk management strategies to preserve its asset value and to manage economic margins.
In Italy, Eni intends to regain market share and improve sales by leveraging commercial initiatives targeting different customer segments, the excellence of service quality, the repositioning of its “luce e gas” brand and efforts to enhance the value of its assets (transport capacity, modulation, supply).

In Europe, Eni plans to grow aggressively in the key markets of France and Germany/Austria. The achievement of planned actions in terms of sale volumes and profitability will be supported by the renegotiation of the economic conditions of key supply contracts in order to improve the competitiveness of Eni’s cost position in the current depressed market.
In the medium term, our target is to recover profitability net of the planned sale of international pipelines.

Our strategic guidelines are:
- To strengthen our leadership on the European natural gas market.
- To recover market share and profitability in Italy.
- To improve operational efficiency.
- Implementing the new pricing and risk management model.

In the Regulated businesses in Italy, we intend to maximize cost efficiency and to implement a capital expenditure plan targeting high service quality and solid profitability growth.