Eni and Sonatrach extend gas supply contract until 2027
The agreement covers almost 15% of the gas imported into Italy
Eni and Sonatrach have signed agreements to renew the gas supply contract to import Algerian gas into Italy until 2027 (plus two further optional years) also defining the transportation arrangements through the pipeline crossing the Mediterranean Sea. These agreements follow in the steps of a partnership on gas supply and transportation that was established more than 40 years ago, encompassing major pipeline projects and many decades of successful supply to Italy.
"I am particularly pleased with the renewal of the gas supply contract and the level of the strategic partnership with Sonatrach which spans from the exploration and production sector, to gas marketing and transportation, to renewables," said Eni CEO Claudio Descalzi. The agreement covers almost 15% of the gas imported into Italy.
This follows Rachid Hachichi's appointment as CEO of Sonatrach, Algeria's national oil company, after government upheaval saw Abdelmoumen Ould Kaddour, among others, ousted from the position. Kaddour aggressively pursued collaboration efforts with some of the world's largest energy firms. It signed agreements with Eni and Total for offshore exploration, and in October 2018 agreed with Total to develop Erg Issouane gas field.
His departure from the company left questions about its strategy, and whether it would continue to pursue foreign partnerships as he did. In early May, Hachichi noted that Sonatrach "will continue to develop partnerships with foreign firms seeking to invest in Algeria. Partnerships are an essential element in our development strategy, especially in the field of production and exploration."