Italian energy major, Eni and Algeria’s national oil company, Sonatrach have signed a Memorandum of Understanding (MoU) to accelerate gas and green hydrogen development in Algeria.

The MoU will not only strengthen energy cooperation between Italy and Algeria but will be instrumental for maximizing and decarbonizing gas developments.

Present at the signing ceremony was Sonatrach Chairperson, Toufik Hakkar, and Eni CEO, Claudio Descalzi, as well as high-ranking dignitaries including Algeria’s President H.E Abdelmadjid Tebboune and Italian Prime Minister, H.E. Mario Draghi.

Under the terms of the MoU, Eni will be able to assess gas potential as well as opportunities for further development across fields discovered by Sonatrach thus far. With gas production for these areas expected to reach three billion cubic meters per annum, new opportunities have emerged for increasing exports to Italy via the Transmed pipeline.

In addition to scaling up gas development, the MoU will see the companies collaborate on a green hydrogen pilot project aimed at decarbonizing operations. The proposed project will be located in Bir Rebaa North (BRN) in the Algerian desert and will support operations at the BRN gas plant – operated by the joint venture company, Sonatrach-Eni GSE.