ALGIERS— Italian Prime Minister Mario Draghi announced Monday in Algiers that Italy signed an energy cooperation deal with Algeria to reduce its dependence on natural gas from Russia.
Before the start of the Russia-Ukraine conflict, Russia supplied Italy with 29 billion cubic meters of gas per year, accounting for around 40 percent of the country’s total usage, according to data from Draghi’s office. Algeria was second on that list, supplying 21 billion cubic meters per year via the Trans-Mediterranean pipeline.
Under the terms of Monday’s agreement, Algeria will provide an additional nine billion cubic meters of gas, allowing Italy to reduce imports from Russia and moving Algeria to the top spot.
After meeting with Algerian President Abdelmadjid Tebboune, Draghi told a press conference in Algiers that the two governments signed a broad declaration of intent focused on bilateral cooperation on energy-related issues along with the deal to export more gas to Italy.
Monday’s agreement is “a significant response” to Italy’s strategic goal of reducing dependence on Russian gas, Draghi said, adding “other agreements will follow.”
The technical aspects of the gas agreement will be carried out by Italian energy giant Eni and Algeria’s Sonatrach.
In separate statement, the Algerian presidency said Algeria will increase its gas exports to Italy as part of agreements signed between the two sides on Monday to strengthen their energy cooperation.
In an agreement signed between Algerian energy giants Sonatrach and its Italian counterpart Eni, the two sides agree to accelerate the pace of development of natural gas production projects and increase Algeria’s gas exports to Italy via the gas pipeline Transmed.
This agreement also confirms the “close” cooperation between the two companies in the field of renewable energy, such as solar energy, hydrogen, biofuels, and the capture, storage and use of carbon dioxide.
Under the agreement, Italian company Eni will continue its investments and strengthen its presence in Algeria.
The commercial relationship between Sonatrach and Eni was established in 1977. Sonatrach has supplied Italy during the last two decades with a total volume of more than 300 billion cubic meters of natural gas.
Foreign ministers of the two countries also signed a joint declaration strengthening cooperation in the energy field.
Italian Prime Minister Mario Draghi is currently on an official visit to Algeria aiming to strengthen cooperation between the two countries.
Source: NAM NEWS NETWORK