Med connection. Italy is deepening its footprint in North Africa, positioning Algeria as a central partner for energy,export, and regional diplomacy.
- This intensified relationship — amid global uncertainty and new trade barriers — aligns with the broader Mattei Plan, Italy’s strategy for Mediterranean stabilisation, and its long-term national interest.
The Eni-rgy of the ties. On Monday, Eni CEO Claudio Descalzi met in Algiers with President Abdelmadjid Tebboune.
- The meeting focused on gas production and exports, future investments, and energy transition initiatives.
- In parallel, Eni and Algeria’s Sonatrach signed a 30-year contract to explore and develop the Zemoul El Kbar area, covering roughly 4,200 km² in the country’s southeast.
- The agreement aims to optimise production by leveraging existing assets and advanced technologies.
The context. Algeria became Italy’s top gas supplier in early 2022, overtaking Russia after its full-scale invasion of Ukraine.
- This shift was enabled by bilateral agreements signed in April and July 2022, which provided a progressive increase in supplies up to 13 billion cubic meters.
- Algerian gas reaches Italy via the Transmed pipeline, which runs through Tunisia to Mazara del Vallo in Sicily. The pipeline has an annual capacity of 30 billion cubic meters.
- This setup solidified in 2023, making Algeria a key energy pillar for Italy and Southern Europe.
The industrial dimension. On Wednesday, a business mission organised by ICE (the Italian Trade Agency) and Confapi (the Italian Confederation of Small and Medium-Sized Enterprises) kicked off in Algiers.
- The initiative focuses on industrial subcontracting, particularly in the automotive sector.
- It involves Italian companies specialising in components, hydraulic systems, and metal structures.
- Algeria aims to revive domestic auto production but remains highly dependent on imported parts — a market segment where Italian firms are well-positioned to grow.
- Italy is a strategic export market for Algeria, with total bilateral trade reaching approximately €14 billion in 2024.
The geopolitical factor. On the same day, July 9, US President Donald Trump announced new 30% tariffs on six countries, including Algeria.
- Starting August 1, the tariffs will target Algerian exports to the US, including petroleum, cement, and iron products.
- In this context, European — particularly Italian — companies may find new openings to reinforce regional value chains across the Mediterranean.
What we’re watching. The Italy-Algeria Business Forum, organised by Italy’s Ministry of Foreign Affairs, ICE, the Italian Embassy, and Algerian counterparts, will take place in Rome on July 23.
- The event will open with an institutional plenary session, panels on energy, infrastructure, and industry, and then B2B meetings.
