Italian energy group Eni has agreed to sell Snam 49.9% of its stake in strategic pipelines carrying Algerian gas into Italy for 385 million euros $436 million, the two companies said on Saturday.
The pipelines will be jointly controlled by the two companies, they said in a joint statement.
Italy imports more than 90% of its gas needs and Algerian gas accounts for around 30% of its total gas needs.
Eni Chief Executive Claudio Descalzi said that this transaction allows us to free up new resources to be used on our energy transition path.
Eni is working to reduce debt and move to low-carbon energy by spinning off a series of oil and gas operations.
Snam, which has a 20% stake in the TAP pipeline thatcarries Azeri gas into Italy, makes most of its money from Italy's gas transport grid.
Like other gas grid operators in Europe, it has pledged to spend more on new green business lines such as hydrogen and is upgrading its gas network to be hydrogen ready.
Snam CEO Marco Alvera said that North Africa could become a hub for solar energy and green hydrogen in the future.
The pipeline companies involved in the deal posted net income of around 90 million euros in 2020.