Eni Explores FLNG Asset Deal to Capitalize on LNG Market Growth

Italian energy major Eni is seeking to monetize its floating liquefied natural gas (FLNG) assets through a potential fund deal, aiming to raise at least €1 billion. The company has engaged Morgan Stanley to facilitate early-stage discussions with infrastructure investment firms, including Apollo, KKR, and Stonepeak. The proposed structure would involve external investors injecting capital into a new entity that would receive cash flows from Eni’s FLNG operations. This strategic move allows Eni to unlock value from its midstream LNG infrastructure without ceding control of the underlying business. The initiative comes as the global LNG market experiences robust demand and elevated prices, driven by geopolitical shifts and the ongoing energy transition. FLNG technology enables the liquefaction, storage, and transfer of natural gas directly at sea, offering flexibility and cost efficiencies compared to traditional onshore LNG terminals. By attracting external capital, Eni aims to further invest in its upstream gas production and other growth areas, strengthening its position in the evolving energy landscape. The deal underscores a broader industry trend where energy companies are increasingly optimizing their asset portfolios and seeking non-dilutive financing to fund strategic expansion and shareholder returns.