Algeria to provide Italy with additional gas, official source says

July 15 (Reuters) - Algeria will provide Italy with an additional four billion cubic metres (bcm) of gas this year, on top of the 21 bcm planned previously, an official source told Reuters.

State oil producer Sonatrach plans to start increasing supplies next week to Italian customers including Eni(ENI.MI), the source said.

Tighter global energy markets have raised demand for Algerian gas, helping the North African OPEC member turn the page on years of declining state revenues.

Sonatrach is already a key gas supplier for countries including Italy, Spain and Portugal, and has said it is reviewing its gas pricing with all clients to take advantage of the favourable market.

The company has also been approached by Eastern European countries seeking new sources of gas, it has said.

Algeria's total gas exports last year were 54 billion cubic metres according to official figures.

Reporting by Lamine Chikhi Writing by Angus McDowall Editing by David Goodman and Louise Heavens

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