- Algeria’s state-owned Sonatrach and Sonelgaz have signed an MoU with Italian gas giant ENI.
- The memorandum in question aims to outline future joint projects related to energy supply and energy transition.
Algeria’s state-owned Sonatrach and Sonelgaz have signed a MoU with Italian gas giant ENI to facilitate electricity supply to Italy and Europe.
A joint press release by the two companies on 1 August revealed that Algeria’s national state-owned oil company, Sonatrach, along with its electricity and natural gas distribution company, Sonelgaz, signed a Memorandum of Understanding (MoU) with the Italian company ENI SpA.
The release emphasised 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 realisation of a submarine cable, facilitating the exchange or supply of electricity to the Italian and European markets.
The statement added, “This highly strategic project will be a premiere and will create an energy hub linking Algeria to Europe.”
The MoU strengthens the existing cooperation between Sonatrach and ENI, building on the strategic memoranda of intention signed on January 23, 2023, in Algiers.
As stated in the release, the memorandum aims to outline future joint projects related to energy supply, energy transition, and decarbonization.
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, which increased by over 4 billion cubic meters of gas in 2022.
He also revealed plans to improve the production of deposits under development by more than 10 billion cubic meters between 2024 and 2028, 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.
He added, “We must also work more to improve the gas supply to keep our export market.” He confirmed that projects are being carried out within the energy transition framework.