Italy, Spain race to secure Algerian gas amid Middle East crisis

Italian PM Giorgia Meloni is seeking to boost gas flows from Algeria, as Italy, along with Spain, competes to secure alternative energy supplies from North Africa, following disruptions in Middle Eastern exports caused by the ongoing war in Iran, Asharq Business reported on March 26.

Speaking after talks with Abdelmadjid Tebboune in Algiers, Meloni said Italy aims to strengthen cooperation across existing and new areas, including shale gas and offshore projects, to increase supply. Meanwhile, Spanish Foreign Minister José Manuel Albares is also set to visit Algeria to secure energy agreements.

Meloni last met Algerian President Abdelmadjid Tebboune in July 2025 in Rome, where several agreements were signed in the energy and telecommunications sectors.

Italy and Spain rely heavily on Algerian gas, delivered via multiple pipelines. Italy’s state-controlled company Eni (BIT: ENI) is renegotiating contracts with Algerian supplier Sonatrach, whose gas, transported through the TransMed pipeline via Tunisia, accounts for roughly 35% of Italy’s imports. Spain is exploring increased imports via the Medgaz pipeline, jointly operated by Sonatrach, Naturgy (BME: NTGY), and BlackRock (NYSE: BLK). Sonatrach holds a 4.1% strategic stake in Naturgy. 

Italian state-backed energy firms are also negotiating with suppliers in Algeria, the US and Azerbaijan to increase imports, with government support aimed at ensuring energy security.

The Middle East conflict has disrupted liquefied natural gas (LNG) supplies, particularly from Qatar, which provided 31% of Italy’s LNG imports last year. Qatar’s gas sector was severely impacted after retaliatory Iranian missile strikes targeted the Ras Laffan Industrial City, causing extensive damage to liquefaction trains and knocking out roughly 17% of the nation’s total export capacity.

The closure of the Strait of Hormuz by Iran effectively stranded all Qatari LNG shipments, forcing QatarEnergy to declare force majeure as 20% of the global gas supply was removed from the market. Repairing Qatar’s damaged facilities could take years, forcing European countries to seek alternative sources. Average flows from Algeria via TransMed have recently been 20bn cubic metres annually, slightly below 2022–2023 levels, but still insufficient to offset LNG shortfalls.

Eni remains central to Italy-Algeria energy ties, partnering in exploration, production, and gas purchasing, while both countries also cooperate on Mediterranean migration management.