Algeria

Algeria: Mediterranean Energy Hub and Hydrogen Bridge to Europe

Algiers – Algeria has solidified its position as a pivotal player in the Mediterranean energy landscape, evolving beyond a traditional gas supplier to become a significant geopolitical actor. A recent report highlights Algeria’s growing influence in European energy security, particularly in the wake of the conflict in Ukraine and the subsequent reshaping of energy strategies across the continent.

The report emphasizes that Algeria has successfully strengthened its role in European energy dynamics. The strategic Algeria-Italy partnership is a key element in this development. Data indicates that Algeria has surpassed Spain to become the primary gas supplier to Italy, experiencing a substantial increase in supply volumes, estimated between 20% and 25% during 2023-2024.

Algeria’s share of the European gas market has exceeded 11% at times, positioning it as the second-largest supplier after Norway. The Italian Prime Minister’s visit to Algeria underscores the implementation of the “Piano Mattei,” designating Algeria as Italy’s foremost partner in Africa.

The country is pursuing a balanced foreign policy strategy, combining the expansion of European partnerships, particularly with Italy and Germany, while maintaining established relationships with other nations. Algeria relies on its existing pipeline network, notably TransMed, to ensure consistent gas delivery to Italy. Concurrently, it is actively developing new energy infrastructure projects to bolster its position in both the gas and hydrogen sectors.

Algeria is taking a leading role in the “SoutH2Corridor” project, aimed at exporting green hydrogen to Europe with a capacity of up to 4 million tons annually by 2030–2035. Algeria’s abundant sunshine hours, exceeding 3,900 annually, coupled with vast expanses of land suitable for solar energy projects, gives the nation a significant competitive advantage in the global green hydrogen market.

Algeria has emerged as a crucial element in European energy security, demonstrating its commitment to meeting the energy needs of its partners while simultaneously investing in a sustainable energy future.

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