The TransMed Gas Pipeline will resume delivering gas from Algeria to Italy today following a seven-day maintenance period. This year,
The TransMed Gas Pipeline will resume delivering gas from Algeria to Italy today following a seven-day maintenance period.
This year, Algeria has overtaken Russia to become the primary supplier of gas to Italy. Outgoing Italian Prime Minister Mario Draghi recently concluded a deal with Algeria to increase deliveries through the TransMed Gas Pipeline by up to nine billion cubic meters (bcm) per year in 2023-2024. Last week, the two countries finalized a deal in which a number of energy companies—including Italian company Eni—will invest $4 billion in a site at the Berkine perimeter to produce one billion oil equivalent barrels.
The deal will help with Italian government to fill its gas storage system to at least 90 percent capacity by November—in line with a European Union-wide target—as the bloc aims to diversify its gas supply chains away from Russian reliance.
African countries are well positioned to become key EU gas suppliers. Though Algeria has an advantage given its long-standing relationship with Eni, it may fall short of the 9bcm goal due to pipeline capacity issues, lacking spare capacity and increasing domestic demand—potentially leaving openings for other countries to fill.