European leaders ink energy deals in bid to sidestep Russia

ROME (AP):

European leaders ramped up their push to secure alternative energy supplies on Monday as fears escalate of a complete natural gas cut-off by Russia, with the leaders of Italy, France and the European Union sealing deals with their counterparts in Algeria, Azerbaijan and the United Arab Emirates.

With his government’s fate in limbo back home, Italian Premier Mario Draghi visited Algeria’s capital of Algiers, seeking to cement the North African country’s role as a pre-eminent regional partner. Algerian President Abdelmadjid Tebboune said a US$4-billion deal would be signed on Tuesday to supply “a significant quantity of gas”.

“Algeria is a very important partner for Italy in the energy sector, in the industry and business fields, in the fight against criminality, and in the search for peace and stability in the Mediterranean,” Draghi said.

Also on Monday, France and the United Arab Emirates signed an agreement on energy cooperation to ensure oil and natural gas supplies from the Gulf country. The French economy ministry didn’t release details on the deal as President Emmanuel Macron hosted Sheikh Mohammed bin Zayed Al Nahyan in Paris.

The same day, EU Commission President Ursula von der Leyen was in Azerbaijan to clinch a deal with President Ilham Aliyev on increased gas supplies from the former Soviet republic.

With the tentative agreement, the EU wants to double the gas imports from Azerbaijan within half a decade. The bloc said the agreement also has guarantees for green energy supplies.

“This is good news for our supplies of gas this winter and beyond,” von der Leyen said.

Europe has been scrambling to secure alternative energy sources as Russia’s war in Ukraine and Moscow’s drawdown or cut-off of natural gas flows to a dozen EU countries have triggered soaring energy prices, inflation and growing expectations of a recession. The 27-nation EU is now bracing for the possibility of a complete Russian cut-off of natural gas that powers industry, generates electricity, and heats homes in winter.

Leaders have been pushing to fill underground gas storage to try to avert a worsening energy crisis when the cold months arrive. There are fears that a major pipeline between Russia and Germany that closed for scheduled maintenance last week will not be turned back on, in retaliation for sanctions over the war.

In Algeria, several Italian ministers signed a series of memoranda of understanding in areas ranging from pharmaceuticals, research, anti-corruption efforts, security, as well as energy sectors.

“This summit also confirms Algeria as our preferred partner in the energy field. In these (last) months, Algeria has become the leading supplier of gas to our country,” Draghi said.

Tebboune, the Algerian leader, said that the deal signed on Tuesday would be “an important agreement between the companies Occidental, Eni and Total for a value of US$4 billion, which allows the supplying of a significant quantity of gas”.

He stressed his nation’s desire to ensure that Algeria will supply solar and conventional energy to Europe.

When Draghi visited Algeria three months ago, a major agreement was reached between Algerian energy giant Sonatrach and Italian energy company Eni to increase gas exports. A pipeline running through Tunisia and under the Mediterranean to Sicily is a key conduit in this strategy.