The Italian government has signed a series of agreements with Algeria, including the increase of gas supplies by 4 bcm for the months ahead. In addition, Eni, Occidental and TotalEnergies signed with the Algerian national oil and gas company Sonatrach an extension of their production sharing contract for a period of 25 years for onshore Blocks 404a and 208 in the Berkine basin, in Eastern Algeria. The contract, signed under Algeria’s new hydrocarbon law of 2019, will allow the partners to boost investments by US$4bn, increasing the fields’ hydrocarbons reserves by 1 Gboe, while extending their production life for further 25 years.
Gas is Italy's main energy source (43% of total energy consumption in 2021). The country, which is seeking to diversify its supply sources, strengthen its energy security and reduce its reliance on Russian gas, imported 96% of its gas needs in 2021 (73 bcm). In 2020, Russia was Italy's largest gas supplier, accounting for 43% of imports. Algeria was Italy's second-largest gas supplier with a share of 23% (2020). The two countries are linked via Tunisia by the Enrico Mattei gas pipeline since 2008 (capacity of 35 bcm/year).