Algeria and Italy Deepen Ties as Ambassador Cotillo Concludes Term
Image: El Mawkie
Takeaway
The deepening Algeria-Italy relationship presents opportunities for European energy companies seeking to diversify their supply chains away from Russia. Companies like Eni and Sonatrach are well-positioned to capitalize on increased gas flows and new projects in shale gas and offshore exploration. Investors should monitor the progress of the SoutH2 Corridor, as it could create new markets for green hydrogen and related technologies.
Algerian State Minister and Minister of Foreign Affairs and National Community Abroad and African Affairs, Ahmed Attaf, received the Italian Ambassador to Algeria, Alberto Cutillo, at the Ministry headquarters on April 26, 2026. The meeting served as a farewell visit as Ambassador Cutillo concludes his mission in Algeria.
Algeria and Italy have been strengthening their bilateral relations, particularly in economic and energy cooperation. Italy has been a strong supporter of Algeria's stability, especially after the civil conflict, and the two countries share historical ties dating back to the Roman Empire. In May 2022, Algerian President Abdelmadjid Tebboune made a state visit to Italy, solidifying relations and resulting in the signing of several cooperation agreements. In June 2024, President Tebboune participated in the G7 summit in Bari, Italy, where a strategic agreement was reached for a mega-project in Timimoun under the “Mattei Africa Foundation” to produce cereals and legumes.
Energy cooperation remains a central pillar of the Algeria-Italy partnership. Following the disruption of Russian gas supplies to Europe in February 2022, Italy turned to Algeria as a key energy partner. By 2023, Algeria supplied 25.5 billion cubic meters (bcm) of gas to Italy, valued at $14 billion. In 2024, Algeria became Italy's primary natural gas supplier, a position reinforced by a $1.35 billion deal between Italy's Eni and Algeria's Sonatrach. The proposed SoutH2 Corridor, a 3,300 km pipeline, aims to transport green hydrogen from Algeria to Europe, aligning with the EU's renewable hydrogen import goals by 2030.
The enhanced partnership benefits both nations. Italy secures its energy supply and strengthens its position as a European energy hub. Algeria gains a vital economic partner, reduces dependence on France and Spain, and increases its strategic relevance in the Mediterranean. Bilateral trade reached €12.9 billion in 2025, with Italian exports to Algeria increasing by 13.8% to €3.2 billion. Italian direct investment in Algeria stands at €8.5 billion. Key Italian exports include petroleum refining products (€435 million, up 64.2%) and general-purpose machinery (€428 million, up 50.9%).
Looking ahead, the focus will be on translating the strengthened partnership into scalable projects and sustained geopolitical integration. Further cooperation is expected in areas beyond energy, including infrastructure, transport, agriculture, industry, and pharmaceuticals. The two countries are also expected to deepen coordination on migration control and combating human trafficking. The next key event to watch is the implementation of projects under the Mattei Plan for Africa, which aims to further consolidate bilateral economic relations and strengthen the strategic partnership between Algeria and Italy.