BY: Hana Saada
ALGIERS- In a recent report titled “Geopolitics of Energy in the Mediterranean Amid International Crises and New Energy Realities,” presented before the European Commission, ESL Energy Center revealed a significant uptick in Algeria’s natural gas exports to Europe, particularly Italy.
According to the report, the global energy landscape has undergone a paradigm shift, with a notable redirection of the world’s energy order towards southern countries to bolster supplies. Algeria, as a major player, has seen a marked increase in its natural gas exports, with Italy emerging as a pivotal destination.
The report highlights Italy as the primary recipient of Algerian gas, with a volume reaching 21 billion cubic meters in the first ten months of the current year. Notably, imports of Algerian gas through the Transmed pipeline to Mazara del Vallo increased by 20.2%, compared to a 12% rise in 2020.
The surge in Algerian gas exports to the European Union is attributed to the geopolitical developments, including the conflict in Ukraine, which prompted the EU to decrease its reliance on Russian gas imports, opting for alternative sources.
The report notes a shift in energy gravity from the east to the south, restoring the Mediterranean’s centrality. In contrast to a 28.4% decrease in Russian gas imports through the Tag pipeline, Algerian gas imports via the Transmed pipeline have risen, solidifying the Mediterranean region’s importance.
Algeria and Italy have embarked on an extensive program aimed at enhancing exports to the European market. This initiative includes boosting Algerian gas production to meet the growing demand.
“The LNG Factor Changes the Game”
The report underscores the pivotal role of liquefied natural gas (LNG) in reshaping the European energy landscape. Algeria’s LNG exports to Europe have witnessed a significant surge, driven by the operation of several regasification units.
In October, Algerian gas exports via the pipeline to Italy reached 21 billion cubic meters, accompanied by a notable increase in LNG shipments. This development is poised to alter Italy’s gas import dynamics, as it seeks to further reduce its reliance on Russian gas.
Algeria has consequently expanded its share in the European LNG market from 11% in 2020 to 15% in the current year. The report highlights a shift in the share of supplies, with the United States and Algeria increasing their contributions from 26% to 30% and 11% to 15%, respectively.
As Algeria continues to play a pivotal role in Europe’s energy security, the collaborative efforts between Algeria and Italy are expected to further strengthen their position in the evolving energy landscape.
