Finance
Italy in Talks With U.s., Azerbaijan, Algeria to Offset Loss of Gas From Qatar
Published by Global Banking & Finance Review®
Posted on March 20, 2026
2 min readLast updated: March 20, 2026
Quick Summary
Italy is seeking alternative gas sources—namely the U.S., Azerbaijan and Algeria—to replace halted Qatari LNG exports following Iranian attacks that crippled 17% of Qatar’s export capacity, costing an estimated $20 billion annually and heightening global energy instability.
Italy Negotiates New Gas Supplies as Qatari LNG Exports Halted by Strikes
Italy's Response to Disrupted Qatari LNG Exports
By Elvira Pollina
Negotiations with Alternative Gas Suppliers
MILAN, March 20 (Reuters) - Italy is talking to several countries, including the United States, Azerbaijan and Algeria, to secure gas supplies now that Iranian strikes on Qatar appear to have halted its exports for an extended period, Energy Minister Gilberto Pichetto Fratin said.
Impact of Iranian Attacks on Global LNG Markets
Extent of Damage and Financial Losses
Iranian attacks have knocked out 17% of Qatar's liquefied natural gas (LNG) export capacity, causing an estimated $20 billion in lost annual revenue and threatening supplies to Europe and Asia, QatarEnergy's CEO told Reuters on Thursday.
Effect on LNG Prices
"The very fact that Qatar's LNG plant that had been shut down was also bombed had a devastating impact on prices," Pichetto Fratin said on Friday attending an event in Milan.
Italy's Gas Contracts and Supply Risks
Edison's Long-Term Agreement with QatarEnergy
Edison, an Italian unit of French power company EDF, has a long-term contract with QatarEnergy for the supply of 6.4 billion cubic meters of gas per year to Italy, nearly 10% of the country's annual gas consumption.
Force Majeure and Supply Disruptions
Qatar had already declared force majeure on gas exports earlier this month, flagging to Edison it would not be able to fulfill its contractual obligations concerning April.
Long-Term Outlook for Qatari Gas Exports
The pause in supplies is likely be longer-lasting after its gas infrastructures were hit hard this week, QatarEnergy's CEO said.
Italy and EU Policy on Russian Gas
Pichetto Fratin said on Friday that despite the disruption in supplies from the Middle East, Italy had agreed with the European Union that the bloc should not return to buying its gas from Russia.
(Reporting by Elvira Pollina, writing by Alvise Armellini and Francesca Landini, editing by Giulia Segreti and Gavin Jones)
Key Takeaways
- •Iranian strikes on Qatar’s Ras Laffan LNG facilities have knocked out approximately 17 % of its export capacity, triggering an estimated $20 billion in annual revenue loss and extended supply disruptions. (en.wikipedia.org)
- •QatarEnergy has declared force majeure on LNG exports as recovery could take 3–5 years, prompting Italy’s energy minister to seek new supply agreements with the U.S., Azerbaijan and Algeria. (en.wikipedia.org)
- •Edison, Italy’s major gas importer, currently secures around 6.4 billion cubic meters per year from Qatar, representing nearly 10 % of Italy’s gas consumption, underscoring the urgency of diversifying supplies. (edison.it)
References
Frequently Asked Questions about Italy in talks with U.S., Azerbaijan, Algeria to offset loss of gas from Qatar
1Why is Italy seeking new gas suppliers?
Italy is seeking new gas suppliers after Iranian attacks halted LNG exports from Qatar, which supplied nearly 10% of Italy's gas.
2Which countries is Italy negotiating with for gas?
Italy is in talks with the United States, Azerbaijan, and Algeria to offset the loss of gas imports from Qatar.
3How have Iranian attacks affected Qatar's LNG exports?
Iranian attacks knocked out 17% of Qatar's LNG export capacity, causing significant global supply disruptions.
4What is the impact of the gas disruption on European energy markets?
The disruption threatens gas supplies to Europe and Asia and has caused a spike in gas prices, affecting overall market stability.
5Will Europe return to buying gas from Russia?
Italy and the EU have agreed not to resume gas imports from Russia despite the current energy disruption.
