Italy's Algerian Gas Imports Expected to Rise 20% This Year... Alternative to Russian Gas

Gas production facilities in Algeria located in the Sahara Desert
[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Italy is expected to increase its imports of Algerian gas by about 20% this year as an alternative to Russian gas.

According to Bloomberg on the 21st (local time), Toufik Hakkar, CEO of the Algerian state-owned gas company, said that exports to Italy this year would reach approximately 25.2 billion cubic meters. Italy imported 20.9 billion cubic meters of gas from Algeria last year.

CEO Hakkar stated that 21.6 billion cubic meters would be supplied under long-term contracts this year, and 3.6 billion cubic meters would be exported through spot transactions.

After the outbreak of the Ukraine war, Italy completed a gas supply expansion agreement with Algeria in April. Italy imports Algerian gas through an underwater gas pipeline crossing the Mediterranean Sea. Former Prime Minister Mario Draghi visited Algeria in July and expressed a desire to further increase gas imports.

Regarding this, CEO Hakkar said that an additional supply contract is expected to be concluded within weeks.

Algeria also supplies gas to Spain through two connected pipelines. However, the volume exported to Spain in the first half of this year decreased by 40% compared to last year. This is because Morocco has blocked the operation of one of the two pipelines, the 'Gaz Maghreb Europe (GME)' pipeline, which passes through Morocco, since November last year.

Algeria and Morocco share a 1,427 km border and have clashed for decades over Western Sahara and border issues. Algeria severed diplomatic relations with Morocco in August last year, and Morocco did not renew the pipeline contract, resulting in the suspension of Algerian gas supply to Spain through the GME pipeline.