Italy, which imports about 95% of the gas it consumes, is one of the European countries most dependent on Russian gas. The Algerian public hydrocarbon giant Sonatrach is ready to supply more gas to Europe, in particular by transporting it via the Transmed gas pipeline linking Algeria to Italy, but its production and transport capacities to Europe remain limited.
Italian Foreign Minister Luigi Di Maio was in Algiers on February 28, 2022, where he discussed with his Algerian counterpart an increase in gas supplies to compensate for a possible drop on the Russian side. Italy, which imports about 95% of the gas it consumes, is one of the European countries most dependent on Russian gas. About 45% of the gas imported by the Peninsula comes from Russia, said the head of the Italian government Mario Draghi, adding that his country could increase its gas deliveries from Algeria, but also from Azerbaijan, Tunisia and Libya.
If the stoppage of economic and financial exchanges between Europe and Russia does not yet concern Russian gas, the prolongation of the conflict in Ukraine could result in a stoppage of Russian gas deliveries to European countries. From this perspective, “the Italian government is committed to increasing energy supplies, especially gas, from various international partners”including Algeria, which is Italy’s second gas supplier, behind Russia.
“Algeria exports a maximum of 22 billion cubic meters via the Transmed gas pipeline, which leaves a capacity of 10 billion cubic meters to export”
Abdelmajid Attar, former Algerian Minister of Energyat AFP
The Algerian public hydrocarbon giant Sonatrach “has unused capacity on the Transmed gas pipeline linking Algeria to Italy” which could be used to “increase supplies to the European market”, assured its CEO, Toufik Hakkar. This gas pipeline can transport up to 32 billion cubic meters per year, four times more than the Medgaz gas pipeline which supplies Spain. Algeria can also supply liquefied natural gas by its LNG carriers.
Europe is the “natural market of choice” for Algeria, which currently contributes 11% to its gas imports, underlined Toufik Hakkar. Luigi Di Maio was accompanied by a delegation including in particular Claudio Descalzi, CEO of the Italian hydrocarbons giant Eni, which is very present in Algeria where it is a partner of Sonatrach.
Italy plans to diversify “as quickly as possible“its energy sources to reduce its dependence on Russian gas,” Italian head of government Mario Draghi said on February 25, regretting the bad choices of the past. Algeria nevertheless intends to preserve its good economic and diplomatic relations with Russia. .