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Snam and SOCAR sign green gas promotion agreement

Italy-headed gas infrastructure major Societal Nazionale Metanodotti (Snam) and the State Oil Company of the Azerbaijan Republic (SOCAR) have signed a cooperation agreement to study the development of renewable gases and use of sustainable energy, with a view to their delivery through the Southern Gas Corridor including Trans Adriatic Pipeline (TAP) in the future.

Societal Nazionale Metanodotti (Snam) and the State Oil Company of the Azerbaijan Republic (SOCAR) have signed a cooperation agreement to study the development of renewable gases and the use of sustainable energy, with a view to their delivery through the Southern Gas Corridor including Trans Adriatic Pipeline (TAP). The agreement was signed on February 20, 2020, in Rome by the representatives of Snam and SOCAR, in the presence of Italy’s Prime Minister Giuseppe Conte and the President of the Republic of Azerbaijan Ilham Aliyev, during the Azerbaijani State visit to Italy (photo courtesy Snam).

Both companies own a 20 percent stake in TAP and SOCAR is a major shareholder of the other Southern Gas Corridor projects. The agreement will investigate prospective collaboration on biomethane, hydrogen and sustainable mobility as well as possible developments regarding the delivery of green gas through the Southern Gas Corridor.

Through this project, Snam and SOCAR aim to contribute to the energy transition and circular economy in Azerbaijan, strengthening collaboration between our two countries. Furthermore, the development of biomethane and hydrogen could offer new opportunities for the delivery of renewable gases through the Southern Gas Corridor and the TAP pipeline, thereby improving environmental sustainability alongside security and flexibility of supply, said Marco Alverà, CEO of Snam

The agreement was signed on February 20, 2020, in Rome by the representatives of Snam and SOCAR, in the presence of Italy’s prime minister Giuseppe Conte and the president of the Republic of Azerbaijan Ilham Aliyev, during the Azerbaijani State visit to Italy.

SOCAR has been taking significant steps in its operations to minimize the negative impact on the environment. The cooperation agreement signed today is an important step towards sustainability in the energy industry, aimed at the development of a greener economy and to curb global warming, in order to sustain life and prosperity, said Rovnag Abdullayev, President of SOCAR.

The agreement between Snam and SOCAR involves collaboration in the areas relating to the energy transition and circular economy:

  • researching and promoting the use of biogas and biomethane, including the potential creation of anaerobic digestion (AD) plants. The expertise of Snam’s subsidiary, IES Biogas, can be applied for the design and construction of these plants. Snam and SOCAR plan to evaluate potential co-investment opportunities in this regard;
  • promoting sustainable mobility using compressed natural gas (CNG), liquefied natural gas (LNG) and hydrogen (H2), through the development of new distribution stations, potentially involving Snam’s subsidiary, Cubogas. There is also the possibility of launching partnerships with car manufacturers and developing the retrofit market;
  • studying the opportunities for developing hydrogen production and related infrastructure.

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