Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Eni, Algeria's Sonatrach aim to increase energy supply to Europe

Published 23/01/2023, 13:37
© Reuters. FILE PHOTO: Eni's logo is seen in front of its headquarters in San Donato Milanese, near Milan, Italy, April 27, 2016.  REUTERS/Stefano Rellandini/File Photo

By Francesca Landini and Alvise Armellini

MILAN (Reuters) -Eni and Algeria's Sonatrach will study joint projects to improve the north African country's energy export capacity, the Italian group said on Monday, as Rome strives to become a bridge for African trade with Europe.

The two energy companies signed new deals on Monday during Italian Prime Minister Giorgia Meloni's first trip to Algiers, where she met the country's President Abdelmadjid Tebboune.

Algeria last year emerged as Italy's biggest gas supplier, replacing a significant part of the imports that previously came from Russia.

Rome wants to further increase its energy imports from Algeria, acting as a hub for supplies between Africa and northern Europe in the coming years.

Under this plan, state-controlled Eni would leverage its long-standing expertise in Algeria, where it has been present since 1981.

Eni CEO Claudio Descalzi travelled to Algiers with Meloni to meet Sonatrach CEO Toufik Hakkar.

"Two agreements were signed between Eni and its Algerian counterpart, one to identify activities to reduce greenhouse gas emissions and the other to achieve an increase in energy exports from Algeria to Italy and potentially from Algeria to Europe," Meloni said at a joint press briefing with Tebboune.

Eni and Sonatrach will study ways to increase the transport capacity for existing gas supplies and also work on a new pipeline to also transport hydrogen, Meloni said.

She also referred to the laying of an undersea electrical cable connecting the two countries, and increasing the capacity of Algeria to produce liquefied natural gas (LNG).

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"There will be a special pipeline that will involve hydrogen and electricity... this is a very important project that will make Italy a distributor of these energies for the whole of Europe," Tebboune said.

Eni's founder Enrico Mattei created privileged business relationships with several north African countries soon after the end of World War Two.

Meloni said she planned a modern-day "Mattei Plan" for a new diplomatic drive in Africa, in which Algeria would play a key role.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.