Algeria and Italy Open the File on Reviewing Natural Gas Supply Contracts

Algeria and Italy have officially opened negotiations to review and renew contracts for the supply of Algerian gas to the European country.

These negotiations are part of ongoing bilateral consultations aimed at securing energy supplies and strengthening the strategic partnership between the two nations, particularly as Algeria consolidates its position as the leading supplier of natural gas to the Italian market, covering more than a third of its needs for this vital energy resource.

In this context, sources familiar with the matter told Echorouk that the review and renewal of gas supply contracts was among the key topics discussed during the visit of Italian Minister of Environment and Energy Security, Gilberto Picciotto Frattini, to Algeria. This discussion took place during his meeting with Algerian Minister of Hydrocarbons and Mines, Mohamed Arkab, on the sidelines of the international forum “North Africa: Connecting Continents and Creating Opportunities.”

The same sources explained that the meeting allowed for extensive discussion of the contracts for supplying Italy with Algerian gas, considered strategic in nature given Algeria’s position as Italy’s primary supplier of natural gas, covering more than a third of its national consumption needs.

The sources indicated that both sides expressed optimism about reaching an agreement soon regarding the renewal of these contracts, emphasising the importance of continued coordination and consultation to finalise the ongoing negotiations and ensure stable supplies and the continuity of energy cooperation.

Our sources also indicated that the discussions included concerns related to the implementation of the European Union’s regulations on methane emissions. Emphasis was placed on the need for joint efforts to adapt to the new environmental requirements without compromising energy security or the strategic interests of either party.

In the same context, the two ministers discussed prospects for expanding mutual investments between Algerian and Italian companies in the hydrocarbons sector, whether in exploration and production activities or in refining, while confirming the importance of strengthening industrial and technological partnerships between institutions in both countries.

It is worth noting that Italian Minister Gilberto Picciotto Frattini also met with Algerian Minister of Energy and Renewable Energies Mourad Adjal, where they discussed energy interconnection projects, particularly in the electricity and hydrogen sectors. They also explored the prospects for broader regional consultations regarding the Southern Hydrogen Corridor, which would strengthen Algeria’s position as a key partner in Europe’s energy transition.

In this context, the same sources indicate that the Algerian side raised, during its meeting with the Italian official, the possibility of Algeria hosting, in the coming months, a ministerial meeting that includes the countries concerned with the Southern Hydrogen Corridor project, within the framework of strengthening regional coordination and advancing energy interconnection projects of strategic dimension between the two shores of the Mediterranean.