Italian PM heads to Algeria looking for gas deals days after explosive confidence vote
Italian PM heads to Algeria looking for gas deals days after explosive confidence vote
Italy's Prime Minister Mario Draghi, who faces a destabilising political crisis at home, is scheduled to visit Algeria on Monday to discuss gas deals as Russia's invasion of Ukraine hampers European energy supplies.
2 min read
Italian Prime Minister Mario Draghi tendered his resignation last week [source: Getty]
With his government's fate in limbo, Premier Mario Draghi is visiting capital on Monday to finalize deals boosting Algerian gas supplies to Italy as Europeans brace for a possible cutoff of gas.
In a sign of the importance of the visit, the Italian delegation includes the foreign minister, interior minister, justice minister and ecological transition ministers. They’ll hold a day of talks, meet with Algerian President and sign joint agreements.
Algeria is set to displace Russia as the main supplier of gas to Italy, after a major agreement was reached during a trip by Draghi to Algeria in April between Algerian energy giant Sonatrach and Italian company ENI to increase gas exports. EU countries have scrambled to diversify energy sources after Russia's invasion of Ukraine.
Monday's trip comes at a precarious time for Draghi, who had to cut it a day short because of political troubles at home. A main partner in his pandemic unity government, the populist 5-Star Movement, boycotted a confidence vote in the Senate last week on an energy costs relief bill, jeopardizing the survival of the 17-month-old government.
The political turmoil forced Draghi to reduce his Algeria visit from two days to just one.
Amid concerns that payments for Russian gas and oil are funding ’s war, Europe is trying to cut its reliance on Russian natural gas imports and prepare for a potential Russian cutoff in reprisal for EU .
Prior to the war, Russia provided Italy about 29 billion cubic meters of per year, compared with about 23 billion from Algeria. Already this year Algeria has delivered 13.9 billion cubic meters to Italy via the Trans-Mediterranean pipeline, a 113 oercent rise over forecasts, according to Algerian energy giant Sonatrach.
Algeria on Friday announced a 4 billion cubic-meter increase in planned supplies for the months ahead.
Italy is especially dependent on natural gas to generate electricity, heat and cool homes, and power its industry.
Italy has also been reaching out to other energy-producing nations to secure alternate sources, including Azerbaijan, , Congo, Angola and Mozambique.
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