Italy secures Italian gas and deals a strategic blow to Algeria
Italian gas has become central to Italy’s energy strategy, following the announcement by Edison, an Italian company, of a new agreement with the American energy giant Shell to purchase liquefied natural gas starting in 2028 for a period of up to 15 years.
Under this agreement, Edison is set to receive approximately 0.7 million tons annually of gas, a volume that closely matches Algeria’s average exports to Italy, which do not exceed one billion cubic meters per year. Experts consider this step a slap in the face for Algeria, which has previously used gas as a political leverage tool against Europe, including threats to cut supplies to Spain and unilaterally shut down the Maghreb-Europe gas pipeline.
Edison confirmed that the new agreement grants greater flexibility and independence, through relying on a Free On Board (FOB) delivery system and utilizing its own transportation fleet. This minimizes any external interference or potential political blackmail and strengthens the security of Italian gas against possible crises.
Italy imports gas from several countries, including Qatar, Libya, Azerbaijan, Algeria, and the United States, covering about 23% of local demand. However, the deal with Washington represents a strategic move to rebalance the Italian gas market and reduce reliance on Algeria as a primary supplier, especially given Algeria’s track record of using gas as a political weapon.
Analysts indicate that this step provides Italy with additional leverage in Europe and emphasizes the need to diversify Italian gas sources to ensure market stability and enhance national energy security.
