Europe turns to old foe Algeria for more gas exports
European countries have turned to Algeria to fulfill their gas supply needs amid the global energy crisis exacerbated by the Russia-Ukraine war and the Israel-Gaza war, reports The New Arab Plus agencies.
Countries such as Italy, Spain and France are largely dependent on Russian gas. When Russia launched its attack on Ukraine, the continent began seeking alternative sources, mainly from Algeria.
Ahmed Attaf, the Algerian Foreign Minister gave details about the disturbance in the energy distribution chain in the region at the World Economic Forum meeting in Riyadh on April 28th.
“We are a Mediterranean country. We are a gas-producing country. We are being asked by our partners in Europe more and more to deliver additional quantities of gas,” stated Attaf.
Italy, which currently relies on Russia for 40% of its gas imports, has negotiated a long-term energy agreement with Algeria’s state-owned Sonatrach.
Supplemented by additional spot purchases, Algeria has agreed to gradually increase gas flows to Italy via the Transmed pipeline, including an extra 9 billion cubic metres (Bcm) of gas for 2024.
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Spain and France also get their main supply of gas from Algeria. Its gas reservoir has also allowed the North African country to strengthen its strategic and political role in the region.
In the first seven months of 2023, Algeria has recorded a 25% increase year-on-year increase in LNG (liquefied natural gas), reaching 8.8 Bcm.
3.7 Bcm (18 million cubic metres per day) of Algerian LNG has been absorbed by countries in the European perimeter as of 2023, according to Bloomberg.
Algeria’s demand to maintain high gas exports and enhance domestic production will require efforts to continue developing gas fields.
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“We have the Palestinian-Israeli conflict that is also impacting our region, and we have the Sahel region… which requires more effective intervention from the UN and its Security Council,” added the Algerian minister in Riyadh.
The prospect of Iran, a supporter of Hamas and a sworn enemy of Israel, being drawn into the conflict also presents a serious risk for the energy market.
The New Arab/ Agencies.
