November 27, 2021
Milan (Reuters)-Snam, Italy, has agreed to buy shares in a pipeline that carries Algerian gas to Italy in a move that could pave the way for hydrogen imports from Africa to Europe.
Europe’s largest gas infrastructure group invested € 385 million ($ 436 million) in energy company Eni on Saturday for a 49.9% stake in the pipeline to jointly manage assets with an Italian company in the same industry. Said to pay.
Making most of the money from managing Italy’s natural gas network, Snam has promised to spend more on new clean business lines such as green hydrogen.
Like other European gas grid operators, we are upgrading our domestic network to accommodate hydrogen.
“In the future, North Africa could become a hub for producing solar energy and green hydrogen,” Snam CEO Marco Albera said in a joint statement with Eni.
Snam, which operates most of Italy’s gas storage facilities, also owns 20% of the TAP pipeline that brings Azerbaijan’s gas to Italy.
The deal reflects the accelerating plans taking place in the global oil and gas industry and is keen to adapt as governments and activists increase pressure to reduce greenhouse gases.
Eni is working to split its oil and gas business into a new joint venture to reduce debt and fund the transition to low carbon energy.
“This transaction frees up new resources for use in the energy transition path,” said Claudio Descardi, CEO of Eni.
Eni, one of Africa’s largest foreign oil and gas producers, has a series of strategic agreements with Algeria’s state-owned energy group Sonatrach.
Italy imports more than 90% of total gas demand, and Algerian gas now accounts for about 30% of the flow.
The pipeline companies involved in the transaction posted a net profit of approximately 90 million euros in 2020.
Snam was advised by UniCredit and Eni was advised by Rothschild.
($ 1 = 0.8836 euros)
(Report by Stephen Jewkes, edited by Giselda Vagnoni and Mark Potter)
Snam buys shares in Algeria’s gas pipeline to pave the way for hydrogen highways
Source link Snam buys shares in Algeria’s gas pipeline to pave the way for hydrogen highways