Marketing

Eni operates in a liberalized market where energy customers are allowed to choose the gas supplier and, according to their specific needs, to evaluate the quality of services and offers. Overall Eni supplies approximately 2,600 customers including large companies, power generation companies, wholesalers and distributors of natural gas for automotive use. Residential users are approximately 8 million and include households, professionals, small and medium sized enterprises, and public bodies located all over Italy and approximately 2 million customers in European Countries. In a context characterized by a six percentage points drop of demand in the Italian market (broadly in line in the European Union) due to declining consumption in all the reference segments and increased competitive pressure, Eni progressed a number of initiatives in order to mitigate the negative impact of the trading environment such as renegotiation of supply contracts, efficiency and optimization actions (for further information on the European scenario, see chapter “Risk factors”).

Worldwide gas sales (bcm)
Worldwide gas sales (bcm) (stacked bar chart)

Natural Gas

Supply of natural gas

In 2013, Eni’s consolidated subsidiaries supplied 85.67 bcm of natural gas, representing a decrease of 1.02 bcm, or 1.2% from 2012.

Gas volumes supplied outside Italy (78.52 bcm from consolidated companies), imported in Italy or sold outside Italy, represented approximately 92% of total supplies, were substantially in line with 2012 (down 0.62 bcm or 0.8%) due to higher volumes purchased in Russia (up 9.76 bcm) and the Netherlands (up 1.09 bcm), completely offset by lower volumes purchased in particular in Algeria (down 5.14 bcm), Norway (down 2.97 bcm) and Libya (down 0.77 bcm).

Supply of natural gas

 

 

 

 

 

 

(bcm)

2011

2012

2013

Change

% Ch.

Italy

7.22

7.55

7.15

(0.40)

(5.3)

Russia

21.00

19.83

29.59

9.76

49.2

Algeria (including LNG)

13.94

14.45

9.31

(5.14)

(35.6)

Libya

2.32

6.55

5.78

(0.77)

(11.8)

Netherlands

11.02

11.97

13.06

1.09

9.1

Norway

12.30

12.13

9.16

(2.97)

(24.5)

United Kingdom

3.57

3.20

3.04

(0.16)

(5.0)

Hungary

0.61

0.61

0.48

(0.13)

(21.3)

Qatar (LNG)

2.90

2.88

2.89

0.01

0.3

Other supplies of natural gas

6.16

5.43

3.63

(1.80)

(33.1)

Other supplies of LNG

2.23

2.09

1.58

(0.51)

(24.4)

Outside Italy

76.05

79.14

78.52

(0.62)

(0.8)

TOTAL SUPPLIES OF ENI’S CONSOLIDATED SUBSIDIARIES

83.27

86.69

85.67

(1.02)

(1.2)

Off-take from (input to) storage

1.79

(1.35)

(0.58)

0.77

..

Network losses, measurement differences and other changes

(0.21)

(0.28)

(0.31)

(0.03)

(10.7)

AVAILABLE FOR SALE BY ENI’S CONSOLIDATED SUBSIDIARIES

84.85

85.06

84.78

(0.28)

(0.3)

Available for sale by Eni’s affiliates

9.05

7.53

5.78

(1.75)

(23.2)

E&P volumes

2.86

2.73

2.61

(0.12)

(4.4)

TOTAL AVAILABLE FOR SALE

96.76

95.32

93.17

(2.15)

(2.3)

Supplies in Italy (7.15 bcm) slightly decreased from 2012 due to the decline of mature fields. In 2013, main gas volumes from equity production derived from: (i) Italian gas fields (6.1 bcm); (ii) Libyan fields (1.7 bcm); (iii) certain Eni fields located in the British and Norwegian sections of the North Sea (1.5 bcm); (iv) the United States (1.2 bcm); (v) other European areas (Croatia with 0.4 bcm).

Considering also direct sales of the Exploration & Production Division and LNG supplied from the Bonny liquefaction plant in Nigeria, supplied gas volumes from equity production were approximately 16 bcm representing 17% of total volumes available for sale.

Supplies of Eni’s consolidated subsidiaries (85.67 bcm)
Supplies of Eni’s consolidated subsidiaries (85.67 bcm) (pie chart)

Sales of natural gas

In 2013, Eni’s gas sales were 93.17 bcm, down by 2.3% from 2012. When excluding the effect of the divestment of Galp, gas sales were broadly in line with the previous year. Eni’s sales in the domestic market increased by 1.08 bcm driven by higher spot sales and by higher sales to importers in Italy (up 1.94 bcm). This positive trend was more than offset by lower volumes marketed in the main European markets (down 5.61 bcm, particularly in Benelux, the Iberian Peninsula and the UK) due to declining gas demand and competitive pressure. Higher sales outside Europe (up 0.56 bcm) were driven by increasing LNG sales in the Far East, particularly in Japan and Korea. Exploration & Production sales in Northern Europe and in the United States (2.61 bcm) declined by 0.12 bcm due to lower sales in the United States.

Gas sales by entity

 

 

 

 

 

 

(bcm)

2011

2012

2013

Change

% Ch.

Total sales of subsidiaries

84.05

84.30

83.60

(0.70)

(0.8)

Italy (including own consumption)

34.60

34.66

35.76

1.10

3.2

Rest of Europe

44.84

44.57

42.30

(2.27)

(5.1)

Outside Europe

4.61

5.07

5.54

0.47

9.3

Total sales of Eni’s affiliates (net to Eni)

9.85

8.29

6.96

(1.33)

(16.0)

Italy

0.08

0.12

0.10

(0.02)

(16.7)

Rest of Europe

8.14

6.45

5.05

(1.40)

(21.7)

Outside Europe

1.63

1.72

1.81

0.09

5.2

E&P in Europe and in the Gulf of Mexico

2.86

2.73

2.61

(0.12)

(4.4)

WORLDWIDE GAS SALES

96.76

95.32

93.17

(2.15)

(2.3)

Gas sales by market

 

 

 

 

 

 

(bcm)

2011

2012

2013

Change

% Ch.

ITALY

34.68

34.78

35.86

1.08

3.1

Wholesalers

5.16

4.65

4.58

(0.07)

(1.5)

Italian gas exchange and spot markets

5.24

7.52

10.68

3.16

42.0

Industries

7.21

6.93

6.07

(0.86)

(12.4)

Medium-sized enterprises and services

0.88

0.81

1.12

0.31

38.3

Power generation

4.31

2.55

2.11

(0.44)

(17.3)

Residential

5.67

5.89

5.37

(0.52)

(8.8)

Own consumption

6.21

6.43

5.93

(0.50)

(7.8)

INTERNATIONAL SALES

62.08

60.54

57.31

(3.23)

(5.3)

Rest of Europe

52.98

51.02

47.35

(3.67)

(7.2)

Importers in Italy

3.24

2.73

4.67

1.94

71.1

European markets

49.74

48.29

42.68

(5.61)

(11.6)

Iberian Peninsula

7.48

6.29

4.90

(1.39)

(22.1)

Germany/Austria

6.47

7.78

8.31

0.53

6.8

Benelux

13.84

10.31

8.68

(1.63)

(15.8)

Hungary

2.24

2.02

1.84

(0.18)

(8.9)

UK/Northern Europe

4.21

4.75

3.51

(1.24)

(26.1)

Turkey

6.86

7.22

6.73

(0.49)

(6.8)

France

7.01

8.36

7.73

(0.63)

(7.5)

Other

1.63

1.56

0.98

(0.58)

(37.2)

Extra European markets

6.24

6.79

7.35

0.56

8.2

E&P in Europe and in the Gulf of Mexico

2.86

2.73

2.61

(0.12)

(4.4)

WORLDWIDE GAS SALES

96.76

95.32

93.17

(2.15)

(2.3)

LNG

Power