Algeria Is Losing 26 Percent Of Its Share Of Italian Energy Market

An official document of the Italian Energy, Networks and Environment Control Authority (ARERA) revealed a frightening decline in Algeria’s share of gas exports to this European country during 2019, as Algeria was the exception among all gas suppliers to Italy, whose share slumped despite the hike in Italian gas consumption last year by 2.2 percent compared to 2018.

A report by the Italian Energy and Environment Regulatory Authority on the country’s gas consumption for 2019 referred to Algeria’s share of coverage of Italian needs in 2019, which decreased by 4.6 billion cubic meters, and the Algerian share, which decreased owing to imports from Norway (+3 billion cubic meters), and Libya ( +0.5 billion cubic meters), in addition to additional shipments of liquefied natural gas (J.A.L.L) from Trinidad and Tobago (1.4 billion cubic meters), and the United States of America (1.6 billion cubic meters).

Looking further into the details, we note that in 2019, despite some decline in Russian exports, which represented 46 percent of Italy’s gas needs instead of 47 in 2018, the Algerian share fell by 26.5 percent last year, in amounts estimated at 13.4 billion cubic meters, compared to 18 billion cubic meters in 2018.

Although the Algerian share of the Italian gas market dropped by 26 percent (-4.6 billion cubic meters) in 2019, Algeria maintained its rank as the second gas supplier to Italy, whether through pipelines or liquefied natural gas (LNG) in quantities amounting to 13.4 billion Cubic meters (it was 18 billion in 2018), and behind Russia, which last year recorded 32.6 billion cubic meters, accounting for 46 percent of Italy’s energy needs.

Regarding prices, the ARERA document in Echorouk’s possession indicated that it was in the range of 0.26 euros per cubic meter of natural gas exported through pipelines in January 2019, and fell to about 0.19 euros per cubic meter by December 2019.

As for the price of a cubic meter of liquefied natural gas, it reached about 0.29 euros at the beginning of 2019, and ended the year within 0.21 euros per cubic meter.

For reference, the national hydrocarbons Company, Sonatrach, has renewed gas supply contracts with three Italian companies, “Eni”, “Edison” and “Enal” in 2019 for a period of 10 years, with annual supply quantities of approximately 14 billion cubic meters.