Think Tank Perspective | Yu Ling: Eni Group Exploring New Commercialization Pathways for Its New Energy Business

On June 23, Eni Group signed an agreement with Ares Management Alternative Credit Funds (“Ares”) to sell a 20% stake in Plenitude—the Group’s natural gas and electricity subsidiary—to Ares for €2 billion, reducing Eni’s ownership in Plenitude to 70%. This transaction values Plenitude at €10 billion and implies a market capitalization exceeding €12 billion. Amid a weakening external macroeconomic environment, Eni’s decision to divest part of its equity serves both to alleviate declining revenue pressures and to exemplify the application of its innovative “satellite model” for new energy business. Under this uniquely structured organizational and financial framework, Eni enhances the adaptability and flexibility of its new energy operations in response to environmental changes. Table 1: Eni Group’s Satellite Companies in the New Energy Sector under the “Satellite Model” Striking a Balance Between Investment and Returns in New Energy Business To strike a balance between investment and returns in its new energy business, Eni pioneered the “satellite model”: consolidating one or several renewable energy businesses into independent legal entities—“satellite companies”—that can access capital markets independently to finance their own growth, and potentially pursue independent listings when conditions mature. This approach enables Eni to rapidly enter high-potential new energy sectors and maximize returns. For Eni, the advantages of the satellite model include: (1) reducing capital expenditure in renewables, thereby safeguarding stable capital spending on traditional oil & gas operations and ensuring continuous shareholder returns; (2) attracting investors specialized in renewable energy; (3) strengthening collaboration with high-potential, energy-transition-focused startups; (4) achieving breakthroughs in new energy business models; and (5) ensuring progress toward corporate decarbonization targets. To date, Eni has established two satellite companies for its new energy business—Plenitude and Enilive—and plans to launch additional satellite companies in sustainable chemicals and CCUS (Carbon Capture, Utilization, and Storage). Eni’s adoption of the satellite model for new energy development remains in its early stages, and its operational effectiveness requires further time to be validated. Preliminary observations reveal two key features: First, satellite companies help establish a fresh corporate image and attract targeted investors. Eni’s two independently operated new energy subsidiaries—Plenitude and Enilive—enjoy greater operational autonomy, enabling them to pursue more promising partnerships and markets without being constrained by traditional oil & gas operations. Their distinct brand identities and enhanced financial transparency make them more appealing to new energy investors and better suited for business expansion across European markets. Second, satellite companies are relatively small in scale and highly focused on specific subsectors and target markets, allowing them to respond more nimbly and flexibly to market shifts. Eni’s strategic joint ventures illustrate this agility: developing offshore wind power in Spain and building a bio-refinery in partnership with Petronas in Malaysia—both initiatives focus on emerging low-carbon transition areas, fully leveraging local resources, R&D capabilities, and lower labor costs to adapt flexibly to market dynamics and enhance project profitability.

Faced with the challenges of energy transition, do major oil companies rise to the challenge and continue expanding into new energy—or strategically retreat and refocus on oil and gas?

In 2025, TotalEnergies shifted its energy transition strategy from a ‘dual-pillar parallel approach’ to one emphasizing ‘deepened synergy and value creation.’ Building upon its foundational dual-pillar strategy—comprising Oil & Gas and Integrated Power businesses—TotalEnergies continues refining and deepening its approach, placing greater emphasis on cross-business synergies and value generation to adapt to evolving market conditions and achieve sustainable development. In terms of business deployment: the oil & gas business is advancing new project development to ensure steady production growth, targeting over 3% output growth in 2025 while simultaneously cutting costs and emissions; the LNG business is consolidating its existing market position and optimizing contract structures to bolster resilience against market volatility. The Integrated Power business prioritizes scaling up renewable energy capacity, aiming to reach 35 GW by end-2025, while further optimizing its asset portfolio and enhancing operational efficiency. To implement this new strategy, TotalEnergies is reallocating resources with heightened focus on project quality and return on investment. Organic capital expenditure will be reduced from $18 billion to $17–17.5 billion in 2025, with diminished investment in smaller-scale projects and intensified resource concentration on core initiatives. In capital allocation, the company ensures balanced funding across business segments while retaining flexibility to adjust dynamically in response to market shifts. Within oil & gas, it will increase investment in priority regions such as Brazil, allocating $6.8–7 billion to support new project development; within Integrated Power, investment will total approximately $4.8 billion—adjusted according to market returns—while direct equity investments in certain businesses will be scaled back in favor of more flexible capital deployment models to improve capital efficiency. Equinor: From ‘Steady Progress’ to ‘Agile Adjustment and Value-Driven Transformation’ In 2025, Equinor shifted its energy transition strategy from ‘steady advancement’ to one of ‘agile adjustment amid change and strengthened value-driven transformation,’ adapting to a complex and volatile environment while balancing energy business growth with emission reduction goals. In business deployment, it continues optimizing its oil & gas portfolio and increasing investment in that segment, targeting over 10% oil & gas production growth between 2024 and 2027—without raising capital expenditure. Leveraging its competitive advantages—including low cost, short payback periods, and low CO₂ emissions—it secures stable cash flow. Simultaneously, it actively expands its renewable energy and low-carbon solutions businesses. Although it lowered its 2030 renewable energy capacity target to 10–12 GW, it remains committed to building a competitive portfolio of renewable projects—for example, advancing multiple offshore wind developments—and aggressively growing its carbon capture and storage (CCS) business, targeting annual transport and storage of 30–50 million tonnes of CO₂ by 2035. To execute this new strategy effectively, Equinor emphasizes value-driven investment, setting clear return targets for all projects and adjusting investments flexibly in response to market shifts. It aims to cut organic capital expenditure by 50% between 2025 and 2027, and starting in 2027, over 50% of its capital expenditure will be designated as ‘non-approved,’ further enhancing investment agility. Eni: From ‘Traditional Energy Dominance’ to ‘Collaborative, Multi-Business Transformation’

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Eni's Plenitude Offers 30% Discount on Standard Power, Gas Prices

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