Italy has finalized a major energy deal with the United States, which will reform energy trade between the two nations. Unlike other European countries that are hesitant to rely on the US under Trump, Italy’s Giorgia Meloni has sought to strengthen ties with the world’s leading economy in mutually beneficial trade agreements. The $15 billion 20-year deal will provide two million metric tons of American natural gas to the European nation.
Venture Global and Italian energy giant Eni solidified the deal. State-controlled energy company Eni has never issued the US a long-term liquefied natural gas (LNG) contract, and stated that the portfolio will expand to 20 million tons of LNG annually by 2030. The United States is essentially replacing Russia as Italy’s energy supplier.
Energy exports to Italy from the US have dramatically increased in the years since the Russian war, followed by Russian sanctions. Over 20% of Italy’s total LNG imports came from the US in 2022, tripling the amount imported from 2021 prior to the Russia-Ukraine war. Two-thirds of Italy’s energy is provided through fossil fuels, with 35.7% coming from natural gas and 37% from oil. The notable distinguishing feature of this plan is the duration, as Italy is counting on the United States to remain a stable ally.
Venture Global announced in June that it would begin supplying additional US gas to a German-based distributor as well. In fact, the United States has essentially replaced Russia as the European Union’s largest energy importer. In 2024 alone, the US provided the EU with 45% of its LNG needs.
There is mixed sentiment over Europe becoming reliant on American energy. European institutions are still attempting to uphold the Green Deal and implement environmental and climate regulations. They expect the US to meet their asinine methane emission rules. Other nations with US-skeptic leaders are wary of trade leverage. Eliminating Russian energy was essentially Europe shooting itself in the foot. While cautious, European leaders know that they need a new source of energy, and the capitalists leading America will happily supply it to them.
