Italy’s Eni to continue Algerian natural gas purchase trend into 2017
The head of Italy’s Eni said Thursday that the company would continue to buy Algerian gas next year in the same vein as its purchases this year, though the volumes the company expects to buy will depend on “pricing conditions.”
Claudio Descalzi, speaking on the sidelines of a London conference, said Eni discussed its expected volume purchases with Sonatrach “every year.” Italy has increased its gas imports from Algeria significantly in 2016, volumes averaged 46 million cu m/d in the first ten months of the year, according to data from Platts Analytics’ Eclipse Energy.
That compares with an average of just 19 million cu m/d in 2015.
Asked whether Eni would continue to buy Algerian gas at the same levels as this year, Descalzi said: “The answer is yes, we will continue to buy.” “The volume is something we discuss every year, so I’m not in a position to say if I’m going to buy 8, 9, 10 [Bcm] or more,” he said, adding that its purchases are also related to the prevailing price conditions.
Descalzi also said that Eni had a long-term gas contract with Sonatrach until 2019, and that the company “has to respect our contract.” He went on to describe the company’s relationship with Algeria as “wonderful.”
Eni and Algeria have signed a number of bilateral deals in the past year including in the fields of upstream and renewable energy.