Snam acquires stake in Eni’s international gas pipeline; paves way for hydrogen imports
Leading energy infrastructure operator, Snam recently announced that it has bought a 49.9% stake in the Italian multinational oil and gas company, Eni and its subsidiaries, operating gas pipelines connecting Algeria to Italy. The latest partnership is considered a strategic move, paving the way for hydrogen imports from Africa to Europe.
The perimeter of 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), company stated.
As per the agreement of sale, Eni will continue to hold a 50.1% stake, whereas the remaining 49.9% will be sold to Snam for a purchase price equal to 385 million euros.
"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," said Marco Alverà, CEO, Snam in a statement.
"In the future, North Africa could also become a hub for producing solar energy and green hydrogen."
The move is believed to benefit Snam as it secures a strategic route for the supply of natural gas to Italy and more importantly an opportunity to support potential developments within the hydrogen value chain also by means of natural resources in North Africa.
As for Eni, the partnership supports its broader strategy of accelerating in sectors related to energy transition.
"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," said Claudio Descalzi, CEO, Eni.
"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."