Italy’s Eni and Sonatrach signed a memorandum of understanding (MOU) aimed at accelerating development of gas fields in Algeria and decarbonization via green hydrogen.

Per the deal, the companies will evaluate “the gas potential and opportunities for accelerated development at specific fields already discovered by Sonatrach in Algeria,” Eni announced May 26 in a statement on its website.

Gas areas covered by the MOU have production estimated at approximately 3 Bcm per year (106 Bcf per year) and “will contribute to increasing the export capacity of Algeria to Italy through the Transmed pipeline,” Eni said.

The Eni and Sonatrach agreement also calls for the companies to explore technical and economic evaluation for a green hydrogen pilot project in Bir Rebaa North (BRN) in the Algerian desert. The aim of the project is to support the decarbonization of the BRN gas plant, which is operated by the Sonatrach-Eni GSE joint venture.

The MOU is key to Italy and Algeria boosting their energy cooperation and is in line with Eni's corporate strategy to diversify energy sources with a focus on decarbonization.

Eni has already laid out a plan to accelerate its pathway to net zero. The Rome-based company aims to reduce Scope 1, 2, and 3 emissions by 35% by 2030, and 80% by 2040 compared to 2018, the company announced in its annual report. By 2050, Eni aims to reach its net-zero goals for greenhouse-gas emissions covering Scope 1, 2 and 3, both in absolute and relative terms.

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