Refusing Russian gas, European countries ask Algeria for “reinforcements”

Several European countries have asked Algeria to increase gas supplies amid a worsening global energy crisis following the Russia-Ukraine conflict in the “old continent” and the Israel-Hamas conflict in the Middle East.

“We are a Mediterranean country. We are a gas-producing country. We are increasingly being asked by our partners in Europe to supply more gas,” Algerian Foreign Minister Ahmed Attaf said on April 28.

Speaking at the World Economic Forum (WEF) meeting in the Saudi Arabian capital Riyadh, Mr. Attaf noted that the Russia-Ukraine war continues to impact and disrupt the energy distribution chain in the region.

As the Kremlin launched its military campaign in Ukraine, European countries – largely dependent on Russian gas – began looking for ways to reduce this dependence and find alternative supplies. As a result, Alregia was targeted.

For example, Italy – which depends on Russia for 40% of its gas imports – has negotiated a long-term energy deal with Algeria’s state-owned Sonatrach.

Under the deal, the North African country will gradually increase gas flows to Italy via the Transmed pipeline, including an additional 9 billion cubic meters of gas this year, supplemented by spot purchases.

Krechba gas plant on the In Salah gas field in Algeria. Photo: The Arab Weekly

Algeria is also a major supplier of gas to Spain and France. In terms of market size, Algeria has the 10th largest proven natural gas reserves globally and is the world's 4th largest gas exporter. This allows Algeria to strengthen its strategic and political role in the region.

The North African country saw its liquefied natural gas (LNG) exports rise 25% year-on-year in the first seven months of 2023 to 8.8 billion cubic meters. Countries in the European Rim have benefited from the growth, absorbing 3.7 billion cubic meters of Algerian LNG by 2023, according to Bloomberg.

Algeria's efforts to boost domestic production and maintain high gas exports will require continued development of gas fields, similar to Sonatrach's Hassi R'mel Phase 3 Enhancement project, which helped boost production levels in 2021.

“The Palestinian-Israeli conflict is also affecting our region, and we have the Sahel region… which requires more effective intervention from the United Nations and the Security Council,” the Algerian foreign minister noted while attending the event in Riyadh.

Since last October, experts have warned that Israel's war in the Gaza Strip could pose a serious threat to the region's natural gas market and could impact LNG supplies to Europe.

The prospect of Iran, a Hamas backer and Israel's arch-enemy, being drawn into the conflict also poses serious risks to energy markets .

Minh Duc (According to The New Arab, Arab News)

Source: https://www.nguoiduatin.vn/tu-choi-khi-dot-nga-cac-nuoc-chau-au-yeu-cau-algeria-tang-vien-a661493.html