Algeria to ink USD 4 billion deal to supply gas to Italy

Algerian President Abdulmadjid Tebboune on Monday (July 18) hailed his country's 'strategic partnership' with Italy during a visit by Italian PM Mario Draghi. Tebboune said Algeria will supply "very big volumes of gas" to Italy through a $4 billion deal. Draghi attended a joint economic summit between the two nations in Algiers.

An official Algerian source said last week that state energy company Sonatrach would increase gas supplies to Italy by a further 4 billion cubic meters (bcm) a year beyond the 21 bcm previously planned.

Algerian gas supplies have become more important for southern Europe in the wake of reduced exports from Russia post its invasion of Ukraine.

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Draghi said in Algiers that Italy was a "privileged partner" of Algeria. He also said that both countries would also work to develop renewable energy sources.

Algerian Prime Minister Ayman Benabderrahmane, speaking at the summit conference, said Algeria was Italy's largest trading partner in Africa and the Middle East. Trade between the two countries in 2021 amounting to 8.5 billion US dollars.

Tighter global energy markets in the wake of Ukraine war have come as an opportunity to turn page on years of declining revenues that sharply reduced foreign currency reserves and led to unpopular fiscal tightening.

(With inputs from agencies)

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