Algerian LNG Shipments to Italy Rose 50% in 2025 as Both Countries Push Deeper Ties
Takeaway
The 50% year-on-year increase in Algerian LNG to Italy reflects a structural shift in Mediterranean energy flows, not a seasonal spike. European utilities and LNG traders should monitor Medlink and the Southern Hydrogen Corridor. Algeria's growing commitment to Italian volumes may tighten spot supply for other Mediterranean buyers.
Italian Energy Minister Gilberto Pichetto Fratin called Algeria an "essential strategic partner" in remarks at the North Africa forum in Algiers on February 5. He cited a 50% year-on-year increase in Algerian LNG deliveries to Italy during 2025 and outlined plans to advance two infrastructure projects: the Southern Hydrogen Corridor and Medlink, a proposed direct gas pipeline connecting Algeria to Northern Italy.
+50%
LNG increase to Italy
year-on-year, 2025
52 bcm
Algeria gas exports
target: 60 bcm by 2030
32 bcm/yr
TransMed capacity
via Tunisia to Sicily
Source: Agenzia Nova, Sonatrach
Algeria became Italy's top gas supplier after Italy accelerated its shift away from Russian pipeline gas in 2022. The existing TransMed pipeline, which transits through Tunisia to Sicily, has a capacity of roughly 32 billion cubic meters per year. Medlink would create a second route, bypassing the Tunisian transit corridor.
Algerian Energy Minister Mohamed Arkab held bilateral talks with Pichetto Fratin on the conference sidelines. The agenda included expanding TransMed throughput, timeline for the Southern Hydrogen Corridor, and terms for future long-term supply contracts.
Algeria's Top Gas Export Destinations (bcm/year, est.)
Source: Sonatrach, IEA Gas Trade Flows
If built, Medlink would give Algeria a second major export route to its largest European customer. Italy has also expressed interest in serving as a transit hub for re-exporting Algerian gas to Central and Northern Europe.
The hydrogen component of the partnership is at an earlier stage. Algeria's Saharan solar resources and existing pipeline infrastructure position it as a potential supplier of green hydrogen to Europe. EU decarbonization targets are expected to drive substantial hydrogen import demand by the early 2030s.
Algeria currently exports approximately 52 billion cubic meters of gas per year across all routes. Sonatrach's stated target is 60 bcm by 2030, which requires both new production capacity and additional export infrastructure.
Italy imported roughly 21 bcm of Algerian gas in 2025, making it the single largest buyer by volume. Spain and France are the second and third largest customers, respectively.