Eni anticipates the gas production from the areas covered under the deal will be 3bcm per year. Credit: John R Perry from Pixabay.

Italian energy firm Eni and Algeria’s state-owned oil company Sonatrach have agreed to fast-track the development of gas fields in the African nation.

The two companies will assess the gas potential and opportunities to accelerate the development of specific fields, which have been discovered by Sonatrach in the country.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Eni anticipates the gas production from the areas covered under the deal to be approximately three billion cubic metres (bcm) per year.

This will lead to increasing Algeria’s export capacity to Italy via the Transmed pipeline, the Italian firm said.

Italy has been seeking to diversify its energy supply to cut dependence on Russian supplies following Moscow’s invasion of Ukraine.

Algeria has been supplying its natural gas to Italy since 1983 through the Transmed pipeline, which runs to Sicily. The North African country was the second-biggest gas supplier for Italy in 2021, according to Reuters.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Under the memorandum of understanding, Eni and Sonatrach will also accelerate the development of green hydrogen to help increase gas exports from Algeria toward Italy.

The companies will carry out the technical and economic evaluation for a green hydrogen pilot project in Bir Rebaa North (BRN), in the Algerian desert.

The project aims to help decarbonise the BRN gas plant, which is operated by the Sonatrach-Eni GSE joint venture.

Last month, the two energy groups agreed to gradually increase gas flows in the Transmed pipeline and reach 9bcm of extra gas annually by 2023 to 2024.

Earlier this month, a consortium between Eni and TotalEnergies started drilling work at an exploration gas well off the coast of Cyprus.