Italy's Snam has agreed to purchase an stake in pipelines that transport Algerian gas to Italy in an effort to open the way for the import of hydrogen from Africa to Europe.
Europe's largest infrastructure group for gas announced that it would pay energy giant Eni $385 million ($436 millions) for the purchase of a 49.9 per cent stake in pipelines, in order to share the assets with its partner Italian company.
Snam, which earns the bulk of its revenue from the management of the natural gas grid in Italy, has made a commitment to invest more on clean, new business models, such as green hydrogen.
Similar to the other European gas grids, the operator of this one is undergoing a major upgrade of its national network to become hydrogen-ready
"In the future, North Africa could also become a hub for producing solar energy and green hydrogen," Snam CEO Marco Alvera said in a joint statement with Eni.
Snam who manages the majority the gas storage units in Italy also holds 20 percent of TAP pipeline, which transports Azeri gas to Italy.
The agreement reflects the rapid speed of development in the oil and gas industry. eager to adjust as activists and governments intensify pressure to cut greenhouse gas emissions.
Eni is currently working to spin off a number of gas and oil operations into joint ventures that will help to reduce the amount of debt it has and to fund its transition towards low-carbon energy.
"This transaction allows us to free up new resources to be used on our energy transition path," Eni Chief Executive Claudio Descalzi said.
Eni is one of the largest international oil and gas producers in Africa has signed a string of agreements that are strategic with Algerian Sonatrach, a state-owned energy firm. Sonatrach.
Italy is the largest importer of total gas requirements and Algerian gas is currently responsible for about 30% of all gas flows.
The pipeline companies that were part of the deal reported net profits of 90 million euros by 2020.
Snam received advice from UniCredit Snam was advised by UniCredit, while Eni was counseled by Rothschild.
(Source:www.economictimes.com)
Europe's largest infrastructure group for gas announced that it would pay energy giant Eni $385 million ($436 millions) for the purchase of a 49.9 per cent stake in pipelines, in order to share the assets with its partner Italian company.
Snam, which earns the bulk of its revenue from the management of the natural gas grid in Italy, has made a commitment to invest more on clean, new business models, such as green hydrogen.
Similar to the other European gas grids, the operator of this one is undergoing a major upgrade of its national network to become hydrogen-ready
"In the future, North Africa could also become a hub for producing solar energy and green hydrogen," Snam CEO Marco Alvera said in a joint statement with Eni.
Snam who manages the majority the gas storage units in Italy also holds 20 percent of TAP pipeline, which transports Azeri gas to Italy.
The agreement reflects the rapid speed of development in the oil and gas industry. eager to adjust as activists and governments intensify pressure to cut greenhouse gas emissions.
Eni is currently working to spin off a number of gas and oil operations into joint ventures that will help to reduce the amount of debt it has and to fund its transition towards low-carbon energy.
"This transaction allows us to free up new resources to be used on our energy transition path," Eni Chief Executive Claudio Descalzi said.
Eni is one of the largest international oil and gas producers in Africa has signed a string of agreements that are strategic with Algerian Sonatrach, a state-owned energy firm. Sonatrach.
Italy is the largest importer of total gas requirements and Algerian gas is currently responsible for about 30% of all gas flows.
The pipeline companies that were part of the deal reported net profits of 90 million euros by 2020.
Snam received advice from UniCredit Snam was advised by UniCredit, while Eni was counseled by Rothschild.
(Source:www.economictimes.com)
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