Algeria instead of Russia: Italy is changing its gas supplier

Those who can do it geographically look for sources other than Russia. Italy, for example, looks across the Mediterranean Sea. New deliveries from Algeria are also a success for Draghi in the government crisis.

When Russia does not resume gas supplies after maintenance work on North Stream 1, Italy also has a problem. At the same time, however, the Italian government is making progress in diversifying its gas suppliers. On Monday she secured further purchases from the North African country in Algeria. A few weeks ago, Algeria replaced Russia as Italy’s most important gas supplier. This is also due to the throttled Russian deliveries, but at the same time to the targeted expansion of gas supplies from Algeria. Norway is also now supplying more gas than Russia, which has fallen to fifth place.

The new gas deliveries, which the state-owned Algerian company Sonatrach promised at the weekend, amount to an additional 4 billion cubic meters of natural gas by the end of the year. Italy received 21 billion cubic meters from Algeria last year. In the spring, the Maghreb country also promised a further 9 billion cubic meters, but stretched over three years to 2024. Under this agreement, 1 billion cubic meters of natural gas have already been delivered; another 2 billion coming by the end of the year and now another additional 4 billion. By the end of 2022, Algeria wants to increase its deliveries by a third to 27 billion cubic meters. That was “a nice success for Italy and for ENI”, the state-owned energy company of the country, as it was called in Italian business circles. “The historical connections between ENI and Sonatrach will be further strengthened,” said Sonatrach at the weekend. It was agreed not to disclose the undoubtedly increased prices. Sonatrach had recently expressed his desire to raise prices. However, that should not have applied to Italy.