Algeria’s state-owned energy company Sonatrach and Italy’s Eni have signed a landmark gas supply agreement, locking in a long-term partnership aimed at stabilizing European energy flows.

The deal, which targets a supply volume of 9 billion cubic meters per year, represents a significant commitment to cross-border energy security between North Africa and the EU.

The agreement reinforces the strategic importance of Algeria as a key supplier to Europe, particularly as the continent continues to adjust its energy mix following the disruption of Russian flows.

For Eni, the pact secures a reliable feedstock for its European operations and strengthens its position in the Mediterranean energy corridor.

The deal is expected to support steady cash flows for both parties and provide a hedge against spot market volatility.

This development comes amid broader efforts by European energy majors to diversify their supply bases.

Eni has recently expanded its commercial arm through a partnership with Mercuria Energy Group, signaling a broader strategy to enhance its trading capabilities and market reach.