Eni to expand Singapore office as oil, LNG market grows in Asia

Italian multinational oil and gas company Eni S.p.A. is planning to expand its trading office based in Singapore as more and more of its oil and liquefied natural gas (LNG) output is sold to Asia to meet the region’s growing import demand, said company officials.

Eni is among the growing group of European companies looking to sell their output to Asia as demands in Europe fall and the US looks more to shale oil than crude oil imports.

Stefano Grasso, a vice president for business development at Eni Trading & Shipping, said in an interview that majority of the company’s production ends up in Asia where there is an increase in refining capacities and refineries are looking to deal directly with producers.

He also added that splitter capacity is increasing in Asia and that will drive condensate consumption.

The Singapore office currently has 15 staff and will be headed by Grasso starting October. They are also looking to hire up to four traders for its crude and oil products trading desks in the regional oil hub.

According to Eni’s website, new crude, condensate and LNG production from joint ventures in Kazakhstan from October as well as from Ghana and the Jangkrik gas field in Indonesia in 2017 will add to the Italian producer’s daily output of 1.8 million barrels of oil equivalent.

Most of the company’s upstream crude assets are located in Africa.

Eni is also marketing Angolan crude. Angolan crude exports to China beat those of Saudi Arabia and Russia in July as it was lifted by the sales from independent refiners in Asian nations.

“The baseload to Asia is Middle Eastern and the top-up grades that they need are from West Africa, which are a bit lighter,” said Jorge Montepeque, Eni Trading and Shipping’s senior vice-president for business development.

Asia is also a key LNG market for Eni Trading & Shipping as it has the mandate to trade short-term and spot supplies, Grasso said.

“We have a strong LNG team in Europe looking after the marketing and trading and we are looking to strengthen the team and presence here in Asia as well, to supply the end-users, to tie into their demand and trade around their needs,” he said.

The region’s buyers, including Japan which is the world’s top LNG importer, are seeking more flexibility in managing supplies instead of being locked into long-term contracts.