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Snam and SOCAR sign collaborative agreement

Published by , Editorial Assistant
World Pipelines,

Snam, an energy infrastructure company, and SOCAR, a state-owned energy company of the Republic of Azerbaijan operating in Azerbaijan and other countries, 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. Both companies own a 20% stake in TAP and SOCAR is a major shareholder of the other Southern Gas Corridor projects.

The agreement was signed in Rome on 20 February 2020 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.

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 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.

Marco Alverà, Snam’s CEO, said: “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”.

Rovnag Abdullayev, SOCAR’s president, said: “SOCAR has been taking significant steps in its operations to minimise negative impact on the environment. The cooperation agreement signed […] is an important step towards sustainability in the energy industry, aimed at development of a greener economy and to curb global warming, in order to sustain life and prosperity”.

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