Italian prime minister Mario Draghi will go to Algeria on Monday to signal a brand new fuel provide deal, as Rome strives to scale back its dependence on Russian gasoline following the invasion of Ukraine.
It’s the newest in a sequence of strikes made by European international locations to safe various gasoline sources as they search to chop Russia off from the worldwide economic system in punishment for the battle.
Italy buys about 30bn cubic meters of fuel a 12 months from Russia, 40 per cent of its whole consumption. Algeria is Italy’s second-largest provider, offering 21bn cubic metres a 12 months — about 31 per cent of annual consumption.
An Italian authorities official stated the Trans-Mediterranean pipeline — which carries fuel from Algeria to Italy through Tunisia — is just working at two-thirds of its capability of 33bn cubic meters per 12 months, giving Italy the scope to quickly step up its purchases from Algeria.
“This will have a direct influence — you don’t have to construct extra pipelines or different new infrastructure,” the official stated.
A 3rd of the Russian fuel provided to Italy annually might be changed by rapidly rising imports from Algeria, the Italian official stated.
Because the invasion of Ukraine, Draghi has careworn the necessity for Italy to urgently diversify its power provides, particularly given the danger that Russia may retaliate towards EU sanctions by shutting off the circulation of fuel to Europe.
“Diversification of our power provides is one thing to intention for no matter what occurs with Russian fuel provides within the instant future,” Draghi instructed lawmakers final month. “We can’t be so depending on the choices of only one nation, as this jeopardises our freedom, not simply our prosperity.”
Final week, Lithuania grew to become the primary EU nation to chop off Russian fuel provides fully, with the 2 different Baltic states additionally briefly stopping its circulation.
Germany has stated it goals to be “nearly impartial” from Russian oil by the tip of this 12 months and from fuel by mid-2024. Berlin just lately signed a long-term settlement with Qatar for the availability of liquefied pure fuel (LNG), which Robert Habeck, economic system minister, stated would scale back its reliance on Russian provides.
EU leaders final month determined to bulk purchase pure fuel collectively from different sources.
The Italian delegation led by Draghi on Monday will embody international minister Luigi Di Maio and Roberto Cingolani, the minister for ecological transition, in addition to the pinnacle of Eni, the Italian power firm, which has sturdy ties with Algerian power firm Sonatrach.
The Italian official stated the deal wouldn’t solely pave the way in which for elevated purchases of Algerian fuel however would additionally embody an settlement on better Italian funding in renewable power within the north African nation, which may assist it minimize down its personal fuel consumption, liberating up extra for export.
Di Maio has visited a number of energy-producing nations in current weeks and Cingolani has been engaged on tips on how to velocity up the event of renewable power sources.
