Algeria's gas exports to Italy are set to increase under an accord signed on Thursday between national oil company Sonatrach and Italian energy major ENI that aims to accelerate the development of Algeria's gas fields and green hydrogen, ENI said in a statement.
The areas covered by the agreement are expected to produce around three billion cubic meters per year and will contribute to increasing the export capacity of Algeria to Italy through the Transmed pipeline, according to the statement.
"Today’s MoU represents a further step in strengthening energy cooperation between Italy and Algeria and is in line with Eni's strategy of diversifying energy sources with a focus on decarbonisation," said the statement.
The Memorandum also covers the technical and economic evaluation of a green hydrogen pilot project in Bir Rebaa North in the Algerian desert, that aims to cut the carbon footprint of the BRN gas plant, which is operated by JV SONATRACH-ENI GSE.
Sonatrach chief Toufik Hakkar and ENI chief executive Claudio Descalzi signed the MoU in Rome - one of several accords in range of sectors inked in Rome during an official visit by Algeria's president Abdelmadjid Tebboune.
Tebboune and Italy's prime minister Mario Draghi witnessed the MOU's signing.
Algeria is the second-biggest supplier of gas to Italy, which sources around 40% of its supplies from Russia. As the conflict in Ukraine escalates, Italy has been scrambling to diversity its energy supplies.