MILAN, May 28 (Reuters) - Italian oil and gas group Eni

ENI.MI said on Tuesday it had reached an agreement with Algeria's state-owned Sonatrach on its long term gas contracts for 2013 and 2014.

In a statement Eni said the agreement will reduce gas volumes of Algerian gas delivered into Italy.

"This agreement is part of the renegotiations program started in the recent months, and contributes to the announced objectives of profitability and cash generation," Eni said.

Eni is in talks with its main gas suppliers to renegotiate take-or-pay contracts which have become onerous after market gas prices fell below the prices set in the contracts.

Algeria is one of Italy's main gas suppliers alongside of Russia.

(Reporting By Stephen Jewkes; editing by Francesca Landini)

((stephen.jewkes@thomsonreuters.com)(+39.0266129695)(Reuters Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))

Keywords: ENI SONATRACH/