ENI and China National Petroleum to Cooperate in Unconventional Gas

A deal highlighting shale gas with energy companies in China represents a push to establish a stronger foothold in Asia, Italian energy company Eni SpA said.

Delegates from Eni signed a memorandum of understanding with their partners at the China National Petroleum Corp.

The MOU, the Italian energy company said, covers a "broad spectrum of possible business opportunities" for both sides.

"This memorandum represents a step forward in Eni's strategy to strengthen its presence in the Far East, a very prospective and attractive region in terms of upstream opportunities and a favorable market," said Eni in a statement.

The MOU highlighted "common opportunities" to expand operations to explore for conventional and unconventional oil and gas reserves in Africa. Eni said it would utilize its "expertise" on exploiting shale gas in North America, meanwhile, with similar assets owned by the Chinese.

The International Energy Agency said Australia is taking the lead in the push toward unconventional gas, though China, India and Indonesia are close behind. European companies are taking preliminary steps to unlock unconventional gas as are other regions.

Global supplies of natural gas could last for another 130 years at current consumption rates. That time frame could double with unconventional gas, the IEA said.

Source: UPI