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    Eni Extends Algerian Gas Import Contract

Summary

The deal covers around 15% of Italian gas imports.

by: Tim Gosling

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Eni Extends Algerian Gas Import Contract

Italy’s Eni announced May 16 that it has renewed a contract for Algerian gas imports.

The Italian major said the agreement with Sonatrach will extend the gas supply contract for Algerian imports to 2027, with an option for a further two years. The agreement covers almost 15% of Italian gas imports, the company noted in its statement. 

Eni and Sonatrach signed a memorandum of understanding on renewing the supply deal in April. The previous contract was due to expire at the end of 2019.

Amongst other elements in an agreement that Eni says strengthens its long-term relationship with the Algerian state-owned oil and gas company, the deal also defines the transportation arrangements through the pipeline crossing the Mediterranean Sea.

The Italian company says the partnership on gas supply and transportation was established more than 40 years ago, encompassing major pipeline projects and many decades of successful supply to Italy.

"I am particularly pleased with the renewal of the gas supply contract and the level of the strategic partnership with Sonatrach which spans from the exploration and production sector, to gas marketing and transportation, to renewables," said Eni CEO Claudio Descalzi.