Does Eni's LNG Expansion in Africa Signal a New Strategic Shift for BIT:ENI?

• Eni has recently resumed offshore exploration in Libya’s Block 16/4 after a five-year pause and, alongside partners, finalized the investment decision for the Coral North floating LNG platform in Mozambique, targeting project delivery by 2028 with a capacity of 3.6 million tons per year.
• These simultaneous project milestones highlight Eni's focus on expanding its LNG portfolio and reviving key exploration assets in North and sub-Saharan Africa, reflecting the company’s efforts to strengthen future energy supply capabilities.
• We’ll explore how Eni’s Mozambique LNG decision signals a possible step-change for its investment narrative and global gas ambitions.

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Eni Investment Narrative Recap

For shareholders in Eni, the core thesis centers on the company's bid to secure its future through large-scale LNG projects and revitalized upstream activity, particularly in Africa. The recent resumption of exploration in Libya and the final investment decision for the Coral North LNG project in Mozambique reinforce Eni’s LNG ambitions and add momentum to its upstream expansion, but these actions do not materially shift the biggest short-term catalyst, which remains near-term project execution and output ramp-up, nor do they alleviate the key risk of geopolitical instability impacting operations in emerging markets.

The Mozambique LNG announcement is the most directly relevant development, underpinning Eni's strategy of global gas diversification and large-capacity project delivery. This aligns with expected demand shifts and positions the company to deliver on its production and earnings growth targets, but it equally highlights ongoing exposure to regional and supply-chain uncertainties that investors must weigh against near-term gains.

Yet, while Eni aims to capture global LNG growth, investors should not overlook the inherent geopolitical risks that come with aggressive upstream bets in regions like...

Read the full narrative on Eni (it's free!)

Eni's narrative projects €88.8 billion revenue and €5.1 billion earnings by 2028. This requires a 0.7% annual revenue decline and a €2.8 billion earnings increase from €2.3 billion today.

Uncover how Eni's forecasts yield a €15.54 fair value, in line with its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community estimate Eni’s fair value from €15.54 to €20.15, showing a wide range of analysis. These varied views stand against the backdrop of Eni’s growth in LNG assets and the potential impact of geopolitical factors on future revenues, reminding you that perspectives on Eni can differ significantly and are worth exploring further.

Explore 3 other fair value estimates on Eni - why the stock might be worth as much as 31% more than the current price!

Build Your Own Eni Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eni research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Eni research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eni's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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