Eni, Sonatrach Sign MoU to Renew Gas Contract

Italian Eni and Algerian state-owned Sonatrach have agreed to come soon to the renewal of the gas supply contract and the transportation arrangements through the TransMed pipeline crossing the Mediterranean Sea.  

Sonatrach CEO Rachid Hachichi and Eni CEO Claudio Descalzi, signed a memorandum of understanding (MoU) to confirm this, Eni said April 25, and told NGW the next day it could give no further details on the extension period, the volume and so on.

“This MoU represents a further step towards the strengthening of the long term relationship between the two companies and set the basis of a new contractual framework taking into account the changes in the market conditions,” the Italian company said in its April 25 statement.

Sonatrach supplies Algerian gas to Italy and the supply contract expires this year.