Eni has tapped Morgan Stanley to assist in raising capital from funds and investment firms including Apollo, KKR, and Stonepeak as part of a potential deal centered on its floating liquefied natural gas (FLNG) platforms.

The move was reported by three sources familiar with the matter.

Discussions between Eni and the funds are in the early stages, and there is no certainty that a transaction will be finalized, the sources noted.

A potential deal could generate at least 1 billion euros for Eni, according to one of the sources.

The move aligns with Eni's broader strategy of attracting capital from infrastructure funds to free up resources for new projects.

Under one scenario being considered, an infrastructure fund would provide an initial cash injection into a special purpose vehicle, which would be entitled to receive cash flows from the FLNG assets, the sources said.

Apollo, Eni, KKR, Morgan Stanley, and Stonepeak declined to comment.

The talks between Eni and the infrastructure funds come as Europe and Asia compete for LNG cargoes on the global market, with supply impacted by the consequences of the conflict involving Iran.

Eni has developed extensive expertise in the development and management of so-called 'floaters', including three floating units that process and convert gas from offshore fields in Mozambique and Congo into LNG for export to international markets.

Eni plans to install another FLNG platform in Mozambique, a project that could cost over 7 billion dollars, and two in Argentina on behalf of the state oil company YPF by 2030.

The assets at the heart of the deal would offer investors exposure to Africa and other geographic areas outside the Middle East, providing diversification from a region embroiled in the conflict in Iran, another source said.