The MoU marks a step ahead in Eni’s energy transition process. Credit: WORKSITE Ltd. on Unsplash.

Italy’s Eni has signed a memorandum of understanding (MoU) with China’s Zhejiang Energy for strategic cooperation across the gas and LNG value chain.

The MoU establishes a cooperation framework, which would allow the two parties to undertake joint initiatives in China and internationally. These initiatives include developing a long-term LNG supply agreement and joint participation in gas/LNG projects.

Eni said that the MoU builds on the two firms’ shared goal to encourage emissions reduction by switching from coal to gas to produce power.

In a press statement, Eni said: “Using gas to produce electricity instead of coal reduces by as much as half the greenhouse gas emissions of a power plant, providing an immediate step forward in decarbonising the sector.”

The Italian firm said that the MoU marks a step ahead in its energy transition process.

Eni recently launched a strategy to reach carbon neutral target by 2050 across its operations, processes and products.

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China earlier pledged to reduce greenhouse gas emissions to a peak before 2030 while reducing dependence on coal. It aims to become carbon neutral by 2060, reported Reuters.

Additionally, the country is building renewable energy projects, with plans to build new natural gas storage, and increase LNG imports.

Recently, Eni signed various agreements with Algerian state company Sonatrach in the upstream, research and development and decarbonisation sectors.

The deals cover the exploration and production, research and development, decarbonisation and training fields.

The two parties plan to relaunch exploration and development activities in the Berkine basin region.