© Reuters. FILE PHOTO: The Eni logo can be seen in front of the headquarters in San Donato Milanese, near Milan, Italy, April 27, 2016. REUTERS / Stefano Rellandini / File Photo
MILAN (Reuters) – Italian energy company Eni has agreed to sell gas company Snam 49.9% of its stake in strategic pipelines transporting Algerian gas to Italy for € 385 million ($ 436 million), the two companies shared on Saturday with.
The pipelines are jointly controlled by both companies, it said in a joint statement.
Italy imports more than 90% of its total gas needs and Algerian gas currently accounts for around 30% of the gas flow.
"This transaction enables us to free up new resources for our energy transition," said Eni boss Claudio Descalzi.
Eni is working to spin off a number of oil and gas operations into new joint ventures to reduce debt and fund the move to low carbon energy.
Snam, which owns a 20 percent stake in the TAP pipeline that transports Azerbaijani gas to Italy, makes most of his money managing the Italian gas transport network.
It has promised to invest more in new green business areas such as hydrogen and, like other gas network operators in Europe, is expanding its gas network to be hydrogen-ready.
"North Africa could also become a hub for the production of solar energy and green hydrogen in the future," said Marco Alvera, CEO of Snam.
The pipeline companies involved in the transaction achieved an annual profit of around 90 million euros in 2020.
($ 1 = 0.8836 euros)
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