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Algeria's Sonatrach, Sonelgaz sign deal with Italian ENI SpA

  • By Al Mayadeen English
  • Source: Agencies
  • 1 Aug 2024 16:18
2 Min Read

Algeria's state-owned Sonatrach and Sonelgaz sign an MoU with Italian gas giant ENI to facilitate the supply of electricity to Italy and Europe.

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  • The flag of the Algerian Sonatrach group flies next to the Algerian flag on its headquarters in Algiers, Thursday, February 8, 2018 (AP)
    The flag of the Algerian Sonatrach group flies next to the Algerian flag at its headquarters in Algiers, Thursday, February 8, 2018. (AP)

The national state-owned oil company of Algeria, Sonatrach, along with its electricity and natural gas distribution company, Sonelgaz, signed a Memorandum of Understanding (MoU) with the Italian company ENI SpA on Thursday, a joint press release by the two companies revealed.

The release emphasized that the MoU will enable Sonatrach, Sonelgaz, and ENI SpA to jointly conduct feasibility studies for a power interconnection project between the Algerian and Italian electrical networks. This project will involve the realization of a submarine cable, facilitating the exchange or supply of electricity to the Italian and European markets.

"This highly strategic project will be a premiere and will create an energy hub linking Algeria to Europe," the statement added.

The MoU strengthens the existing cooperation between Sonatrach and ENI, building on the strategic memoranda of intention signed on January 23, 2023, in Algiers.

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The memorandum in question aims to outline future joint projects related to energy supply, energy transition, and decarbonization, as stated in the release.

Algeria to maintain supplier status

Youcef Khanfar, the Central Director of New Resources at the Sonatrach Group, emphasized a few months back Algeria's determination to maintain its status as "the largest supplier of natural gas in the Mediterranean basin and Africa." 

Khanfar, speaking to Algerian Radio (Radio Algérienne), highlighted Algeria's current position as the largest supplier across the Mediterranean and Africa, maintaining its commitment "to remain so by exploring new fields and improving production from fields under development."

The Central Director also noted significant progress in field production, with a notable increase of over 4 billion cubic meters of gas in 2022.

He also revealed plans to reach more than 10 billion cubic meters between 2024-2028 in terms of improving the production of deposits under development, noting that Sonatrach’s objective is to respond to the national demand increasing by 3 to 5% per year, expected to exceed 60 billion cubic meters starting from 2030.    

“We must also work more to improve the gas supply in order to keep our export market,” he added, confirming that projects are being carried out within the framework of the energy transition.

  • Algeria
  • Italy
  • Eni
  • Sonatrach

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