Snam buys stake in Algerian gas pipelines
Italy’s Snam has agreed to buy a stake in gas pipelines connecting Algeria to Italy, it said on November 27.
Snam will pay fellow Italian company Eni €385mn ($436mn) for a 49.9% stake in companies operating two groups of gas pipelines carrying Algerian gas to Italy. The transaction includes the onshore gas pipelines running from the Algeria and Tunisia borders to the Tunisia coast (TTPC), and the offshore gas pipelines connecting the Tunisian coast to Italy (TMPC).
“The transaction will create synergies among the parties’ respective areas of expertise in gas transport on a strategic route for the security of the natural gas supply in Italy, enabling potential development initiatives within the hydrogen value chain from North Africa,” the companies said in a joint statement.
Subject to the fulfilment of the relevant conditions, the transaction is expected to be completed by the third quarter of 2022.
“This transaction allows us to free up new resources to be used on our energy transition path, while at the same time maintaining the management of a strategic infrastructure with Snam to ensure the security of natural gas supply to the country,” Eni CEO Claudio Descalzi said. “Gas will play a key role in the transition of energy systems to zero-emission models, and it is important to maintain the availability and diversification of supply routes for this resource.”
Pursuant to the agreement, Eni will contribute its entire ownership interests in the two pipelines to a newly incorporated Italian company in which Eni will continue to hold a 50.1% stake, whereas the remaining 49.9% will be sold to Snam.
"Through this transaction, Snam is bridging its infrastructure towards North Africa, which represents a key area for gas supplies to Italy and forward looking for hydrogen development. In the future, North Africa could also become a hub for producing solar energy and green hydrogen,” Marco Alvera, Snam CEO said.