Algeria’s state hydrocarbon company Sonatrach has signed an agreement with ENI, the Italian explorer which allows the latter to increase the volume of gas imported through the TransMed / Enrico Mattei pipeline “under the umbrella of the long term gas supply contract in place with Sonatrach starting from the next autumn”.
The deal was inked by the President of Sonatrach, Toufik Hakkar, and the CEO of ENI, Claudio Descalzi, in the presence of the Algerian President Abdelmadjid Tebboune and the Italian Prime Minister Mario Draghi.
This agreement will allow to exploit the pipeline’s available transportation capacities to ensure greater supply flexibility, gradually providing increasing volumes of gas from 2022, up to 9Billion cubic meters (Or 318Bllion cubic feet) per year in 2023-24.
“The signing took place during the visit of the Italian Prime Minister Mario Draghi to the President of the Democratic Republic of Algeria, Abdelmajid Tebboune, which also included a wider letter of intent to strengthen cooperation in the energy field signed by the Algerian Foreign Minister Ramtane Lamamra and the Italian Foreign Minister Luigi Di Maio on behalf of their respective Governments, in the presence of the Algerian Prime Minister, Aymen Benabderrahmane, the Algerian Minister of Energy Mohamed Arkab, and the Italian Minister for Energy Transition Roberto Cingolani”, a statement by ENI read.
“The agreement between ENI and Sonatrach, whose foundations have been laid during the previous visit of Descalzi and the Italian Foreign Minister Di Maio to Algiers last February 28, was defined and signed in record time following intense negotiations between the top management of the two companies”, ENI reported. “The new gas volumes covered by the agreement are also the result of the close collaboration in the development of upstream gas projects, leveraging Eni’s distinctive fast track model, which is bringing a significant acceleration to the production potential of the Algerian fields”.
