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Snam purchases stake in Algerian gas pipelines

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Snam will purchase a stake in pipelines carrying Algerian gas into Italy in a move that could pave the way for hydrogen imports from Africa into Europe.
Europe's biggest gas infrastructure group based in Italy said it would pay energy company Eni €385 million for a 49.9% stake in the pipelines to jointly control the assets with its fellow Italian company, Reuters reported.
Snam, which makes most of its money from managing Italy's natural gas transport grid, has pledged to spend more on green hydrogen.
"In the future, North Africa could also become a hub for producing solar energy and green hydrogen," Snam CEO Marco Alvera said in a joint statement with Eni.
Snam, which runs most of Italy's gas storage facilities, also owns 20% of the TAP pipeline that carries Azeri gas into Italy.
The deal reflects the accelerating pace of planning taking place in the global oil and gas industry, keen to adapt as governments and activists ramp up the pressure to slash greenhouse gases.
"This transaction allows us to free up new resources to be used on our energy transition path," Eni CEO Claudio Descalzi added.
Eni, one of the biggest foreign oil and gas producers in Africa, has a series of strategic agreements with Algerian state-owned energy group Sonatrach.
Italy imports more than 90% of its overall gas needs and Algerian gas currently accounts for around 30% of flows.
The pipeline companies involved in the deal posted net income of around 90 million euros in 2020.