Algeria has become in great demand by many European countries for gas supplies since the war in Ukraine. Algerian President Abdelmadjid Tebboune announced an ambitious target for gas exports at the inauguration of the 30th Algerian Production Fair (FPA 2022) last month: a volume of 100 billion cubic meters destined for the international gas market. by 2023.
This objective has never been achieved by Sonatrach since the country’s independence. In order to double its export capacity to Europe by 2027, Algeria must meet a number of conditions. Abderrahmane Mebtoul, university professor and international expert, details some of them: an improvement in energy efficiency, a new pricing policy, investment in the discovery and development of renewable energies, an improvement in transport and gas storage, and the establishment of new partnerships with the European Union (EU).
In order to implement this plan, Sonatrach has launched a major investment plan of 40 billion dollars over five years. The Algerian group intends to develop its gas resources and maintain its competitiveness by manufacturing quality products adapted to international standards. For this, several partnership contracts have been concluded with foreigners in the field of hydrocarbon development.
Improved energy efficiency
According to Miloud Medjelled, Director General of Studies and Forecasting at the Ministry of Energy and Mines, the volume of production will increase in the coming years.
As part of its development plan for 2030, 50% of natural gas will be used for electricity production and a renewable energy program will be implemented in record time.
Partnerships with European countries
Europe is Algeria’s first customer. In November 2022, Algeria signed a supply contract for 3 million cubic meters for the next three years to Slovenia.
In addition, the Algerian president highlights the partnership between his country and Italy: in April 2022, the export volume to his Italian partner is 97 million cubic meters per day and almost 27 billion cubic meters per year.
Goal for 2027
Algeria and Italy are working together to extend these deliveries to other European countries, such as Germany. According to Mr. Hakkar, CEO of the Sonatrach group, the export volume to Italy should increase by 9 billion cubic meters in the next two years. In addition, discussions are underway with France to increase the volume of deliveries.
With a major investment plan of $40 billion and agreements reached with Slovenia and Italy, Algeria is ready to double its gas exports to Europe by 2027.
