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The two firms will be combining their main trading books for various commodities including oil, liquefied natural gas and biofuels under a new entity headquartered in Geneva, according to statements on Wednesday.<\/p>\n
It\u2019s a big move for both companies\u2014integrating Eni\u2019s physical energy supply chains with Mercuria\u2019s trading expertise could potentially allow them to compete more effectively with larger rivals such as Shell Plc or Vitol Group.<\/p>\n
\u201cThis partnership brings together two highly complementary organizations,\u201d Mercuria Chief Executive Officer Marco Dunand said. The venture will combine \u201cphysical energy flows with world-class trading, logistics and risk management capabilities.\u201d<\/p>\n
For Eni, the tie-up could allow it to challenge its larger European rivals Shell, bp Plc and TotalEnergies SE, which are among the largest oil and gas traders in the world, buying and selling far more than what\u2019s produced by their own assets.\u00a0<\/p>\n
For Mercuria, which long has trailed rivals like Vitol, Trafigura Group and Gunvor Group in its physical trading volumes, the deal offers an opportunity to supercharge an expansion push, especially in LNG. The fuel is seen by many in the industry as a key growth commodity, but it has faced setbacks, with Steve Hill, a former senior Shell executive whom it hired in 2024,\u00a0leaving\u00a0this year.<\/p>\n
Eni and Mercuria expect the joint venture to be operational in 2027, with the two firms equally represented at the senior managerial level, according to a spokesperson for the Italian oil giant. Commodity traders won\u2019t be made redundant, the spokesperson added.<\/p>\n
Price volatility caused by the Iran war has created opportunities for companies that buy and sell energy in large volumes. Shell and BP posted first-quarter earnings that\u00a0far exceeded\u00a0expectations, thanks to a surge in profit from their extensive in-house trading operations.\u00a0<\/p>\n
Mercuria\u2019s first-half profit\u00a0jumped\u00a088%, putting it on track for one of its best-ever annual results. For several months, the trading house has been doing deals to grow its access to physical commodities and processing assets, including $1.2 billion to help finance the buyout of a copper mining company in Kazakhstan and a deal to buy an oil refinery and petrol stations in Argentina.<\/p>\n
Trading activities for both parties will be exclusive to the JV for the identified commodities, except cases that require joint approval, the spokesperson said, adding that Eni does not currently expect refinery assets to form part of the venture.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) \u2013 Italian oil company Eni SpA and commodity merchant Mercuria Energy Group Ltd. signed an agreement to…\n","protected":false},"author":2,"featured_media":95557,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[125],"tags":[47664,4531,47670,2127,46845,47665,8251,47672,47669,1928,1554,65,22031,47673,1234,22089,47667,22083,44918,44723,47671,1325,466,47668,2094,4532,23231,47666,196,12700,158,47674],"class_list":["post-95556","post","type-post","status-publish","format-standard","has-post-thumbnail","category-vitol","tag-biofuels-trading","tag-bp","tag-commodity-merchant","tag-commodity-trading","tag-crude-oil-trading","tag-energy-commodities","tag-energy-industry","tag-energy-logistics","tag-energy-supply-chains","tag-energy-trading","tag-eni","tag-geneva","tag-global-energy-markets","tag-global-lng","tag-gunvor","tag-liquefied-natural-gas","tag-lng-market","tag-lng-trading","tag-mercuria","tag-mercuria-energy-group","tag-oil-and-gas-trading","tag-oil-market","tag-oil-trading","tag-physical-trading","tag-risk-management","tag-shell","tag-totalenergies","tag-trading-joint-venture","tag-trafigura","tag-upstream-oil-and-gas","tag-vitol","tag-world-oil"],"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/95556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=95556"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/95556\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/95557"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=95556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=95556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=95556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}