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Algeria's Sonatrach signs gas supply agreement with Eni (Italy)

Sonatrach has concluded a gas supply agreement with Eni for dry gas from the Ourhoud 2, Sif Fatima 2 and Zemlet El Arbi areas, for a total volume of 1.5 bcm/year until 2049. The two parties also amended their gas supply contract until 2027 (plus two additional optional years), which was signed in May 2019. The agreement also includes transportation arrangements through the 37 bcm/year Enrico Mattei gas pipeline crossing the Mediterranean Sea since 2008. In addition, Sonatrach and Eni have signed a Memorandum of Understanding (MoU) to identify opportunities for joint investment in hydrocarbon exploration and production in Algeria within the framework of the new Hydrocarbons Law.

Eni has been importing gas from Algeria for more than 40 years. Current gas pipeline commitments amount to around 12 bcm/year, corresponding to around 15% of total Italian gas imports. In 2018, Algeria covered 26% of Italy's total gas imports.