Italy and Algeria deepen energy ties amid diversification drive

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Italy’s prime minister, Mario Draghi, arrived in Algeria this Monday for a high‑profile visit aimed at securing a new energy accord. The talks are set to run from 13:30 local time (12:30 GMT) as both nations work to expand gas imports and reduce dependence on Russian energy in light of the ongoing conflict in Ukraine. The visit reflects Rome’s strategic objective to diversify its energy portfolio and strengthen ties with North African partners who can reliably supply gas in the years ahead.

Draghi’s delegation reached Algeria at the invitation of President Abdelmadjid Tebboune and was welcomed by the Algerian leadership. The official talks began in the presence of Foreign Minister Ramtane Lamamra and Energy Minister Mohamed Arkab, marking a new chapter in sustained dialogue between Rome and Algiers. Observers note that this meeting underscores a broader shift in Europe’s energy strategy as it seeks to optimize supply routes and secure stable contracts with reliable producers in the region.

Italy currently relies heavily on imported gas, with roughly 90 percent of its consumption sourced from abroad. A sizable portion of that import mix has historically come from Russia, making diversification a political and economic priority for Rome. Algeria stands out as a crucial supplier; it has long been positioned as a major gas exporter to Europe, providing significant volumes that contribute to Italy’s energy mix. The potential agreement under consideration would help tilt the balance toward a more varied and secure supply in the years ahead, reducing exposure to any single supplier. The need for diversification echoes a broader policy discussion throughout Europe about energy resilience and strategic partnerships with North African producers.

During the discussions, the Italian foreign minister, Luigi Di Maio, who joined the delegation, emphasized the urgency of the deal by noting that while diversification should have accelerated earlier, there are now many partners and shared interests worldwide ready to cooperate. The commitment reflects a practical approach to energy security, acknowledging that long-term partnerships with friendly energy producers are essential for stabilizing household and industrial energy costs in both countries.

Earlier in the month, Claudio Descalzi, the head of Italy’s energy giant Eni, and his counterpart from Algeria, Toufik Hakar of Sonatrach, explored ways to broaden the collaboration between the two national energy champions. The discussions focused on increasing Algerian gas supply and optimizing the operations of both companies to ensure steadier flows through existing infrastructure. The dialogue signals a continuing push to align commercial ambitions with strategic policy goals that support mutual growth and regional stability in North Africa and Europe.

The conversations come at a time when market watchers note a delicate balance on pricing and commitments. Hakar indicated that any review of gas pricing would be considered in a way that preserves fair returns while maintaining competitive pricing for all customers, including a long‑standing European client base. This stance points to the practical realities of energy markets where price signals must reflect both producer economics and consumer needs, especially in a period of geopolitical flux.

Analysts observe that Algeria’s approach to energy diplomacy is evolving as it navigates relationships with broader regional powers and approaches to Western Sahara policy. Algeria has historically positioned itself as a capable energy partner for Europe, while also pursuing its own strategic interests in regional politics. The evolving dynamic with Italy highlights how energy ties can intersect with broader foreign policy considerations and economic collaboration, shaping how both countries manage future energy security challenges.

Italy’s gas purchases from Algeria are transported via the Transmed pipeline, a corridor with substantial capacity that has supported substantial flows in recent years. The system has demonstrated its ability to deliver large volumes to meet domestic demand, contributing to Italy’s objective of diversifying its gas supply and reducing reliance on any single source. In 2021, flows through the pipeline reached significant levels, illustrating the pipeline’s role in sustaining European energy resilience and providing a stable supply line for the Italian market.

Draghi is scheduled to hold two formal discussions with President Tebboune. The first meeting is set to occur at the El Mouradia presidential palace at 14:30 local time (13:30 GMT), followed by a working dinner at the official residence at 19:20 local time (18:20 GMT). The sequence of meetings underscores the importance both sides place on a thorough, substantive exchange that can lay the groundwork for a durable gas accord and a broader framework for economic cooperation. As this dialogue unfolds, observers will be watching closely for signs of how quickly a concrete agreement could emerge and how it might influence energy markets across the region.

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