Eni, Snam Join Forces on Algeria-Italy Gas Pipelines

(Reuters) — Italian energy group Eni and gas grid operator Snam have clinched a partnership to jointly manage their assets in the gas pipelines connecting Algeria to Italy, the companies said on Tuesday.

With Russia curtailing its gas flows to Europe, Algeria last year emerged as Rome's biggest gas supplier, making the network between the two countries a strategic infrastructure for Rome's energy security.

RELATED: Algeria to Sign $4 Billion Gas Supply Deal with Italy

In a joint statement, the two companies said they would also study how to develop the network to support energy transition and promote the use of hydrogen.

The announcement follows the finalization of a deal worth 405 million euros ($434.48 million) under which Snam acquired a stake in Eni's assets in various companies managing the gas networks between North Africa and Italy.

In particular, Snam bought 49.9% of the equity interests held by Eni in the companies operating both the onshore gas pipelines running from the Algeria and Tunisia borders to the Tunisian coast and the offshore gas pipelines connecting the Tunisian coast to Italy.

The transaction, initially agreed in November 2021, has obtained all approvals needed in Italy and abroad.

($1 = 0.9321 euros)

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