03:14 PM EDT, 10/22/2024 (MT Newswires) -- Eni (E) is planning to invest nearly 2 billion euros ($2.16 billion) to transition its chemicals business in Italy to decarbonized options from fossil fuel-based products, Bloomberg News reported Tuesday.

The company will gradually stop producing basic chemicals at its loss-making unit Versalis and focus on renewable, circular and specialty chemicals made from non-fossil fuel materials, the media outlet reported, citing sources with knowledge of the matter.

Eni's transformation project is reportedly expected to take about five years to complete.

Versalis plants in Sicily and Puglia will reduce and eventually stop using steam crackers that convert hydrocarbons into ethylene as the company explores future uses for these sites, the news outlet reported.

Northern Italy plants will reportedly rely mainly on imported fossil fuel-based chemicals instead of supplies from the southern plants.

Eni did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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