Algeria, Italy sign agreement to increase natural gas supply

Algeria announced the signing of an agreement to increase natural gas supplies to Italy and to review gas prices according to global markets.

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According to the written statement made by Algeria’s state energy company Sonatrach, an agreement has been reached between Sonatrach and Italian energy company ENI regarding natural gas.

The agreement, signed in the presence of Algerian President Abdelmadjid Tebboune and Italian Prime Minister Mario Draghi, aims to increase natural gas shipments to Italy by using the capacity of the TransMed pipeline.

The energy agreement between the two countries includes reviewing the gas prices of both companies according to the global market in 2022-2023.

Speaking at the signing ceremony on increasing natural gas supply from Algeria to Italy, Italian Prime Minister Draghi said, “Our governments signed a declaration of intent on bilateral cooperation in the energy sector. This includes the agreement between ENI and Sonatrach to increase natural gas exports to Italy.”

Draghi said, “I had declared immediately after the invasion of Ukraine that Italy should rapidly reduce its dependence on Russian natural gas. These agreements are an important response in achieving this strategic goal.”

The Italian Prime Minister announced that they want to develop their cooperation with Algeria not only in the field of energy but also in other sectors and that they will meet for an intergovernmental summit in Algeria on July 18-19, in this context.

On the other hand, in the statement made by the Italian energy company ENI, it was noted that with today’s agreement, natural gas shipments will be increased gradually up to 9 billion cubic meters per year in 2023-2024, taking advantage of the capacity of the Transmed pipeline, which carries natural gas from Algeria to Italy.

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