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Eni tightens its grip on Algeria, as Rome prepares for a key bilateral summit

Eni’s CEO met Algeria’s president to announce new investment, as an Italian mission boosted SME ties. US tariffs on Algeria may create openings for Italy ahead of the July 23 Business Forum in Rome

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.

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