A Memorandum of Understanding (MoU) has been sealed between Sonatrach and Sonelgaz with the Italian energy company Eni SPA for exploration on construction of a subsea power line connecting Algeria to Europe.
This pioneering initiative is set to create an energy hub linking Algeria to Europe, marking a significant step in enhancing energy cooperation and supply between the two regions. The MoU tasks the firm to to jointly conduct feasibility studies for an electrical interconnection project. The project aims to connect the Algerian and Italian electricity networks via a submarine cable, facilitating the exchange and supply of electricity to the Italian and European markets.
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Energy infrastructure
The MoU builds on the existing partnership between SONATRACH and Eni, following two strategic protocols of intent signed on January 23, 2023, in Algiers. These protocols outlined future joint projects focusing on energy supply, energy transition, and decarbonization efforts.
This agreement underscores Algeria’s commitment to solidifying its role as a key energy supplier to Europe, expanding its contributions to the continent’s energy needs, including electricity. The strategic collaboration with Eni SPA highlights Algeria’s ambitions to advance its energy infrastructure and foster stronger ties with European energy markets.
Algeria aims to produce 27% of its electricity from renewable resources by 2035. The country imports very little energy as its domestic consumption is met by its own oil and natural gas production, which is heavily subsidized. Natural gas and oil account for almost all of Algeria’s total primary energy consumption.
