Algeria emerges as lifeline for Italy and Spain’s energy needs

Algeria, Africa’s largest gas producer, is becoming a vital energy partner for Italy and Spain

Algeria, Africa’s largest gas producer, is becoming an increasingly vital energy partner for Italy and Spain as tensions in the Middle East disrupt global liquefied natural gas (LNG) supplies.

Italian Prime Minister Giorgia Meloni, visiting Algiers, said Italy aims to expand its gas imports from Algeria following agreements to deepen bilateral energy cooperation.

During the visit, Meloni met with President Abdelmadjid Tebboune, emphasizing the importance of strengthening ties amid interruptions to LNG deliveries from Qatar, which previously accounted for around 10% of Italy’s yearly gas demand, as Business Insider Africa reported.

The Algerian President, Abdelmadjid Tebboune, on Wednesday reaffirmed the strategic nature of the partnership between Algeria and Italy, particularly in the energy sector

“We have agreed to strengthen our cooperation, particularly through our national champions, Eni and Sonatrach, while also exploring new areas such as shale gas and offshore projects,” Meloni stated. “Over the long term, this will help boost gas flows from Algeria to Italy.”

Although no timeline was provided for when additional supplies will begin, Tebboune reaffirmed Algeria’s commitment to supporting Italy’s energy needs: “I want to underline Algeria’s readiness to honour its commitments with Italy as we navigate challenges in oil and gas markets.”

Italy has been actively seeking alternative suppliers to compensate for reduced deliveries from Qatar. Last week, Energy Minister Gilberto Pichetto Fratin confirmed that Rome is negotiating with several countries, including Algeria, to secure extra gas supplies.

Algeria already plays a significant role in Italy’s energy landscape, supplying about 20 billion cubic meters of gas in 2024, nearly 30% of Italy’s total consumption, with roughly half delivered through contracts between Sonatrach and Italy’s Eni.

Spain is also considering expanding its imports from Algeria. Once the country’s largest gas supplier, Algeria’s flows to Spain fell after a key pipeline via Morocco was shut down, prompting Madrid to rely more on LNG from the United States and Qatar. Rising prices due to the Middle East conflict are further driving Spain’s interest in bolstering Algerian pipeline imports.

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