Algeria to increase natural gas exports to Italy by nearly half

(Bloomberg) — Algeria is set to increase its natural gas exports to Italy by nearly 50% with a new deal due to be signed on Monday, people familiar with the matter said.

The increase in exports will likely lead Algeria to replace Russia as Italy’s largest natural gas supplier.

The North African country will increase its exports to Italy by 9 to 10 billion cubic meters a year from the end of 2022, the sources said, asking not to be named as the deal is not public.

Italy received about 21 billion cubic meters of gas from Algeria in 2021, compared to about 29 billion cubic meters from Russia.

A spokesman for the Italian government declined to comment.

The agreement is to be signed on Monday, during Italian Prime Minister Mario Draghi’s visit to Algiers, where he is to meet President Abdelmadjid Tebboune. The deal includes increased gas imports from Algeria and joint investments in renewable energy, Bloomberg reported on Friday.

Read more: Italy to strengthen ties with Algeria in rush to avoid Russian gas

Italy, which depends on Russian imports for around 40% of its gas consumption, is seeking alternative sources of supply as European Union leaders plan to take a tougher stance against alleged Russian atrocities in the war. in Ukraine. Italy has said it would support a ban on Russian gas if the EU is united behind such a move.

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