Sources: Eni is exploring potential LNG asset deals with large funds

Three people with knowledge of the matter have confirmed that Italian energy group Eni asked Morgan Stanley for help in a potential 'deal' backed by their 'floating liquefied natural gases (FLNG) assets.

Sources warned that the contacts between Eni, and the funds were at an early stage. There is no guarantee that the deal will be concluded.

One of the sources claimed that any potential transaction would generate at least 1 billion euros in revenue for Eni.

This move is in line with Eni’s wider strategy to tap?investment funds for infrastructure projects and free up capital.

Sources said that under one proposal, the infrastructure fund would inject an initial amount of cash into a vehicle with a special purpose, which could then receive payments from FLNG assets.

Apollo, Eni KKR Morgan Stanley, Stonepeak and KKR declined to comment. Eni is in talks with infrastructure funds as Europe and Asia vie for LNG cargoes, and the supply has been disrupted due to the fallout of the Iran War. Eni is an expert in the setting up and operation of so-called floaters, such as three floating?liquefied gas units which process and liquefy natural gas from offshore?fields? in Mozambique?and?Congo?to export it abroad. Eni is planning to build another floating LNG platform for YPF in Argentina and in Mozambique. The project could cost up to $7 billion.

Another source said that the assets at the center of the?transaction would offer investors exposure to Africa and other geographies outside the Middle East. This would diversify away from an area still engulfed in the Iran War. Reporting by Francesca Landini, Elvira Pollina and Keith Weir

(source: Reuters)