Eni, Sonatrach to ramp up Transmed liftings
Eni said April 11 it would increase its gas liftings through the 40.2bn m3/year TransMed pipeline, having expanded the terms of a contract renewal that is due to commence this autumn.
Eni's offtake will gradually rise from later this year to reach a maximum of 9bn m3/yr sometime in 2023 or 2024. The deal was signed during talks between Eni CEO Claudio Descalzi, Italian prime minister Mario Draghi and Algeria's president Abdelmadjid Tebboune, following earlier discussions on February 28. The political leaders also signed a letter of intent to support further energy sector collaborations between Italy and Algeria.
Eni is the leading IOC operating in Algeria, with a net output of around 95,000 barrels of oil equivalent/day. It last amended its pricing contract for Transmed deliveries in June 2021, but later agreed to sell its 49.9% equity stake in the pipeline to Italian midstream operator Snam on November 27.
Eni's activities in the north African gas powerhouse are one of the main fallbacks for Italian policy makers scrambling to replace Russian imports, following Moscow's actions in Ukraine. Eni and Sonatrach operate Hassi R'Mel field in the Bir Rebaa desert, Algeria's flagship gas production asset which produces more than half of the country's exports.
Hassi R'Mel has now entered long-term decline, but Eni has invested heavily to stabilise yields from the project. The Italian major is also looking to add significant reserves elsewhere in Algeria, having entered talks to buy BP's stakes in the In Salah and In Amenas concessions, which collectively produce as much as 15% of Algeria's total gas exports.