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Italy and Algeria have struck a deal for exporting more natural gas. In a significant development, Italian Premier Mario Draghi has secured a deal for more natural gas imports across a Mediterranean pipeline from Algeria
Italy and Algeria have struck a deal for exporting more natural gas. In a significant development, Italian Premier Mario Draghi has secured a deal for more natural gas imports across a Mediterranean pipeline from Algeria.
It’s the latest push by a European Union nation to reduce dependence on Russian energy, consciously taken after the Russian invasion of Ukraine. It may be recalled that Russia is Italy’s biggest supplier of natural gas, representing 40 percent of total imports. Algeria comes second in the pecking order. The North African country provides some 21 billion cubic meters of gas using the Trans-Mediterranean pipeline.
After meeting with President Abdelmadjid Tebboune, Italian premier Draghi said that an agreement to intensify bilateral cooperation in the energy sector along with the deal to export more gas to Italy would be mutually beneficial. This, he said, was significant for the strategic goal of quickly replacing Russian energy.
Immediately after the invasion of Ukraine, Italy announced that it would move with utmost speed to reduce dependence on Russian gas. The two governments -Italy and Algeria- have signed a declaration of intent on bilateral cooperation in the energy sector. This will be supplemented by an agreement between Eni, the Italian company, and Sonatrach to increase the export of gas to Italy.
The Italian premier was invited to the country by Algerian President Tebboune to discuss boosting cooperation between the two countries. Italy is determined to follow the decisions of the European Union” on new sanctions against Russia, including a possible gas embargo.
It may be noted that Italian energy giant ENI’s chief executive Claudio Descalzi visited Algeria in February along with Italy’s foreign minister to discuss the prospects of increased supplies from the North African country. Sonatrach, the Algerian company at that time said it was ready to increase gas supplies to Europe. Algeria accounts for about 11 percent of Europe’s gas imports.
The new deal between ENI and Sonatrach would add up to 9 billion cubic meters of gas from Algeria. His increased flows will start next fall. Russia’s current export to the EU of gas is 29 billion cubic meters a year.
