ROME: Italian gas group Snam signed a strategic agreement with pipeline operator PipeChina on Tuesday to develop gas infrastructure projects in China and make joint investments in the country and beyond.
The agreement, announced by Italy's Foreign Minister Luigi Di Maio after a meeting in Rome with Chinese counterpart Wang Yi, is PipeChina's first international industrial agreement.
PipeChina, known formally as China Oil and Gas Pipeline Network, is taking over oil and gas pipelines and storage facilities in China from state-owned energy giants PetroChina and Sinopec. The aim is to provide neutral access to the country's pipeline infrastructure to try to help small and non state-owned companies and encourage investment in the sector.
Snam, Europe's biggest gas transport network, said under the deal it would be helping PipeChina build and run gas transport, storage and regasification facilities in the country.
The Italian company, which is devoting increasing attention to clean gas and hydrogen solutions, said the two companies could also work together on energy transition issues in China.
Snam, which has been working in China for two years, is controlled by state lender CDP through a vehicle that is partly owned by State Grid Corporation of China.
Snam, which said in China it would be the "privileged partner" of PipeChina, said the two companies would look at joint investments, including overseas.
Earlier on Tuesday Di Maio said he had discussed with Wang Yi how to relaunch fundamental economic partnerships, hailing Beijing as one of Rome's main economic partners.
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