Europe’s leading natural gas transmission operator, Snam, and a multinational energy company, Eni, have finalised an acquisition deal, transferring 49.9% of the equity interest held directly and indirectly by Eni in the two groups of companies that operate the Algeria- Italy gas pipelines, Snam announced on Tuesday, January 10, 2023.
According to Snam, the transaction’s scope includes international onshore and offshore gas pipelines from North Africa to Italy. The onshore pipeline stretches from Algeria and Tunisia borders to the Tunisian coast (TTPC), while the offshore gas pipelines connect the terminal at the Tunisian coast to Italy (TMPC).
Eni transferred the ownership interests to a new company known as SeaCorridor S.r.l., in which Snam has already acquired 49.9% of the share capital, leaving the remaining 50.1% under Eni’s ownership. The partnership with allow Eni and Snam to control SeaCorridor jointly.
As detailed in the press release, Eni paid Snam about $435 million (about €405 million) in total to finalise the deal. The transaction leverages Eni’s and Snam’s areas of specialisation in gas transport for a strategic route to bolster Italy’s natural gas supply security and promote development initiatives in the hydrogen value chain, with the natural resources in North Africa playing a vital role.
The North Africa-Europe link plays a critical role in progressive decarbonisation at the internal level, supporting the energy transition efforts.
Eni-Snam transaction has already obtained the authorisations required under the anti-trust and golden power legislations, consent from the Tunisian government, approval of the shareholders, as well as corporate bodies of Target Companies.