Eni and Snam have launched a new company owning gas pipelines that run from Algeria into Italy.
Snam has bought a 49.9% stake in the new SeaCorridor venture, for around 405 million euros ($435mn). Eni will keep the remaining 50.1%.
Eni noted the deal covered the Trans Tunisian Pipeline Co. (TTPC) and the TransMediterranean Pipeline Co. (TMPC). These cover the onshore and offshore links respectively. TTPC runs from Algeria into Tunisia, to the coast, while TMPC connects the Tunisian coast to Italy.
Snam and Eni will have joint control over SeaCorridor, under a joint governance agreement.
Eni said the deal leveraged the two companies’ areas of expertise.
All the required authorities have approved the deal, including the Tunisian government.
The two companies signed the sale and purchase agreement on November 27, 2021, for Snam to enter the pipeline companies’ equity. The deal was initially expected to close in the third quarter of 2022.
The originally agreed price was 385mn euros ($413mn), but it was adjusted for the time between signing and closing.
It also noted that there was scope to develop hydrogen resources within the venture. There was discussion in December, during talks between Algeria and Germany, about the possibility of transporting green hydrogen via Italian links.
Sonatrach, last month, said the networks between Algeria and Europe could transport the resource, with North Africa having abundant solar energy.
TTPC consists of two 48 inch lines. The first began operations in 1983 and the second in 1994, running fro around 370 km. They end at the Cap Bon point, on the Mediterranean coast. It includes five compression stations.
The TMPC runs under the sea to Sicily, at Mazara del Vallo. The link then connects to Snam’s transportation network. Eni and Sonatrach-backed Transmed owned TMPC. Now, SeaCorridor will own a 50% stake in Transmed.
In November 2021, Eni CEO Claudio Descalzi said the deal would provide the company with more resources, while maintaining management of strategic infrastructure.
Eni and Snam also struck a deal in December to work together on carbon capture and storage (CCS) in Italy. The Ravenna project will capture 25,000 tonnes of CO2 initially from an Eni treatment plant and inject into a depleted offshore field.