Algeria’s national oil company Sonatrach signed two agreements with global energy major Eni that would see the two companies undertake a series of joint projects covering energy security, energy transition and decarbonization
Signed by Claudio Descalzi, CEO of Eni and Toufik Hakkar, CEO of Sonatrach, in the presence of H.E Abdelmadjid Tebboune, President of the Republic of Algeria and H.E Giorgia Meloni, Prime Minister of Italy, the two agreements will pave the way for the two companies to enhance cooperation on energy developments to ensure energy security.
As per the terms of the agreements, Eni and Sonatrach will co-conduct renewable energy, green hydrogen and carbon dioxide capture and storage projects to expand the country’s power generation portfolio while ensuring the reduction of greenhouse gas and methane emissions in pursuit of an inclusive energy transition.
The two parties will also cooperate on maximizing energy exports from Algeria to meet growing energy demand in Europe, a development which also will drive Algeria’s energy monetization agenda and accelerate gross domestic product growth.
According to Eni CEO Claudio Descalzi, “These agreements bear witness to our commitment to ensuring Italy’s security of supply while at the same time pursuing our decarbonization objectives. The partnership between Italy and Algeria gets stronger today, and Algeria’s key role as one of Europe’s main energy suppliers is confirmed”.
The signing of the agreements follows Sonatrach signing a deal with Italy to supply the country with 300 million cubic meters of gas in 2022, as well as a $405 million agreement signed with SNAM that would see Eni maximizing the Trans-Tunisian and the Trans-Mediterranean Pipelines which runs from Algeria to Europe.