Eni has agreed to sell Snam a 49.9% stake in its two subsidiaries of international gas pipelines connecting Algeria to Italy.
The sell-out agreement includes the onshore gas pipelines running from the Algeria and Tunisia borders to the Tunisia coast (TTPC) and the offshore gas pipelines connecting the Tunisian coast to Italy (TMPC).
Eni will contribute its ownership interests in the two pipelines to a newly incorporated Italian company (NewCo), in which Eni will continue to hold a 50.1% stake, whereas the remaining 49.9% will be sold to Snam for a purchase price equal to €385 million. The target companies generated a net income (100% of Eni’s stake) of around €90 million in 2020.
Both partners will exercise joint control over the NewCo and will consolidate NewCo through the equity method. The transaction is subject to various regulatory approvals.
The transaction will create synergies among the parties’ respective areas of expertise in gas transport on a strategic route for the security of the natural gas supply in Italy, enabling potential development initiatives within the hydrogen value chain from North Africa.
Snam will benefit from its position on a strategic route for the security of natural gas supplies to Italy and the potential to support the hydrogen value chain in North Africa.
Claudio Descalzi, CEO of Eni, said, “This transaction allows us to free up new resources to be used on our energy transition path, while at the same time maintaining the management of a strategic infrastructure with Snam to ensure the security of natural gas supply to the country.”
Marco Alverà, Snam CEO, commented, “Through this transaction, Snam is bridging its infrastructure towards North Africa, which represents a key area for gas supplies to Italy and forward-looking for hydrogen development.”