Official Document Of ENI Reveals The Frightening Decline Of Algerian Gas Exports

An official document of the Italian Energy giant ENI shows a dramatic drop in Algerian gas exports during the first six months of this year compared to the same period of 2018, while the Italian company’s investment reached about 372 million euros in projects in Algeria during the first half of 2019.

In this context, the document of the detailed financial results of the Italian company “ENI” for the first semester of 2019, which in possession of Echorouk, reveals that the company’s imports of Algerian gas reached 3.73 billion cubic meters by the end of last June, a decline of 2.75 billion cubic meters compared to the same period of 2018, when imports from Algeria reached 6.48%.

According to the same document, Algeria’s exports of gas to the Italian company ENI fell by 42.4% in the first semester and this was the largest decline of all gas exporting countries for ENI.

Russia topped the list of gas exporters for ENI, known as the “six-sided dog”, and its export levels remained the same at the end of June compared with the same period in 2018, reaching 13.29 billion cubic meters.

However, what is remarkable is the increase in Libyan exports, despite the unstable situation in this country and the war between the retired general Khalifa Haftar and the internationally recognized national accord government of Tripoli, where Libya’s exports reached 2.90 billion cubic meters, compared with 1.80 billion cubic meters by the end of June 2018.

With regard to Eni’s investments in Algeria in the first semester of 2009, it reached 372 million euros that are related mainly to the acquisition of energy reserves, in addition to 134 million euros to have the licenses for the development phase in Algeria.

The results come about two months after the renewal of contracts for the export of Algerian gas (Sonatrach) for the Italian company Eni for an additional 10 years, in annual quantities that are estimated between 9 to 10 billion cubic meters.

In view of the renewal agreement, the second half of the year is expected to notice an increase in the quantities of gas that are imported by the Italian “Eni” to reach 6 or 7 billion cubic meters.

The National Hydrocarbons Company SONATRACH was able, despite the unstable political situation in Algeria, to renew three major contracts for the export of gas with the Italian ENI, the Portuguese GALP, and the Italian “ENEL”, totaling more than 16 billion cubic meters of the three companies annually.