Algiers, 19 July 2022 (TDI): Italy and Algeria held the 4th Italy-Algeria intergovernmental summit in Algiers on Monday.

The event was co-chaired by the President of the Council of Ministers, Mario Draghi, and the President of the People’s Democratic Republic of Algeria, Abdelmadjid Tebboune.

The Gas Deal

The Italy-Algeria summit was successful as the Italian government finalized a major energy deal with Algeria amid fears over the risk of a potential Russian gas cut-off.

The details of the new partnership were announced in Algiers on Monday during a joint press conference by Italy’s Prime Minister, Mario Draghi, and Algerian president, Abdelmadjid Tebboune.

Effects of the Russia-Ukraine War

The Russian war has had a Spillover effect on the globe, particularly in Europe.

Before the war, Russia provided Italy with about 29 billion cubic meters of gas per year, compared with about 23 billion from Algeria.

This year, Algeria has delivered 13.9 billion cubic meters to Italy via the Trans-Mediterranean pipeline, a 113% rise over forecasts, according to Algerian energy giant Sonatrach.

State oil producer Sonatrach plans to increase supplies next week to Italian customers, including Eni SpA (ENI.MI), the source said.

According to official figures, Algeria’s total gas exports last year were 54 billion cubic meters. This agreement will further increase the gas import of Algeria.