Snam SpA, the San Donato Milanese-headquartered Italian energy infrastructure company having had a market cap of €15.4 billion before onset of the pandemic outbreak, had agreed to purchase 49.9 per cent stake in an Algerian gas pipeline entity that channels Algerian gas into Italy, illustrating a major move that could cement Snam SpA’s pathway for hydrogen imports into Europe from Africa.
Aside from that, according to the financial terms of the deal, Snam SpA, the largest gas infrastructure company in Europe, had agreed to lay off its parent company Eni about $436 million for a 49.0 per cent stake in the Algerian gas pipeline, while Snam, an Eni subsidiary that makes money by managing the natgas transport grid in Italy, had pledged to invest more on green business lines such as hydrogen fuels, spurring up optimism that the pipeline could pave the way for transporting African hydrogen into the Europe.
Besides, similar to other European gas grid managers, Snam SpA had long been sketching out an option to upgrade its national grid network for transporting hydrogen.
Italy’s Snam purchases stake in Algerian gas pipeline
Nevertheless, latest Snam SpA move had underscored a growing pressure on global oil and natgas industry to adopt an approach to go carbon neutral as a raft of European Governments alongside climate change activists were looking to press fossil-fuel giants to trim greenhouse gases.
Meanwhile, expressing an out and out optimism over Snam SpA’s purchase of Eni stake in Algerian gas pipeline, Snam Chief Executive Marco Alvera said in a joint statement with Eni following the announcement, “In the future, North Africa could also become a hub for producing solar energy and green hydrogen”.