Algiers, 26 January 2023 (TDI): According to her office, Italian Prime Minister Giorgia Meloni visited Algeria on Monday. Algeria and Italy signed many memorandums during Premier Meloni’s two-day visit.
The visit symbolizes 20 years of Italy-Algeria friendship and cooperation. Meloni began her tour by laying a wreath at the Monument of Martyrs to honor Algerians who perished fighting France.
Meloni said that the two countries are constructing “an extraordinary bridge” to make Italy an energy hub for Europe. She remarked that Algeria is Italy’s “most reliable, strategic, and long-standing” regional partner.
Meloni declared that the accords intend to enhance Algerian energy exports to Italy and Europe via a new pipeline. She claimed a channel would deliver “an energy mix we both believe as the solution to the energy challenge.”
Algerian President Abdelmadjid Tebboune said a solid strategic alliance would allow his gas-rich North African nation to “go beyond the energy sector” and end its hydrocarbon dependence.
Tebboune said that he wants Italy to become a platform for distributing Algerian energy exports in Europe. However, he wants to broaden their collaboration beyond energy.
President stated commercial exchanges doubled in 2022 to $16 billion from $8 billion, the “proof that effective relationship in an ascending dynamic.”
Background
Since the Ukraine Invasion, Algeria has been its leading natural gas supplier. Italy wanted to become Europe’s energy hub by importing from Africa, particularly Algeria.
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Meloni’s visit follows two last by her predecessor, Mario Draghi, who secured for Italy agreements that raised Algerian gas imports from 14 billion cubic meters (494 billion cubic feet) in 2021 to 20 billion (706 billion cubic feet) in 2022, 20% of total Italian imports.
ENI CEO Claudio Descalzi signed two agreements with Sonatrach to reduce greenhouse gas emissions, increase gas exports to Italy, and establish a hydrogen pipeline to Italy.
Algeria- Italy Ties
Italy and Algeria have a long history of bilateral relations, dating back to ancient times. Italian construction and engineering firms have invested heavily in Algeria. Both nations are energy-focused. They’ve been expanding energy cooperation.
Since the 1970s, Algeria has been exporting natural gas to Italy. The Trans-Mediterranean pipeline started exporting gas to Italy in 1977 via Tunisia. In the 1980s, both countries extended gas channels to 12 bcm/y from 8 bcm/y.
Algeria and Italy built the GALSI pipeline in the 1980s to transmit Algerian natural gas to Italy via Sardinia and Corsica. Technical and financial issues prevented the completion of the 8 bcm/y projects.
Energy efficiency is another area of their collaboration. The two countries launched a strategic alliance in the late 1990s, focusing on renewable energy and energy efficiency.
Both countries’ private sectors have invested in Algeria’s energy sector. Italian firms have built power stations and pipelines. They help local industries to explore and produce oil and gas in Algeria.
Recently, the two countries have collaborated on energy initiatives other than natural gas. The Algerian and Italian governments signed an MoU to collaborate on solar and wind energy projects. The MoU also covered energy efficiency and storage.
Sonatrach, the Algerian state oil company, and ENI inked an MoU to collaborate on Research and Development initiatives in exploration, production, refining, and petrochemicals.
