The energy specialist, Tewfik Hasni, believes that the time when foreign companies operating in Algeria and exporting their products while benefiting from a gas price at a “ridiculous” rate is over. He calls for charging more for these companies which realize all their added value abroad.
Should Algeria continue to sell gas at a low price to foreign companies that export and transfer their dividends?
The issue of gas transfer costs for companies that export and which sometimes make all the added value on the exported “semi-product” is not new. This is the case with clinker. The main production cost in clinker is gas.
Then, we are told that we exported cement: this is false. Clinker is a semi-finished product that is subsequently transformed elsewhere, in other units of the exporter, and the added value is done there (abroad).
The cost of selling gas on the internal market is ridiculous. This we have often condemned. If it had been for national consumption, we would have understood that, if it had been for an Algerian company that could compete with other exporters abroad, we would also have understood that. However, it is not the case. It is the foreign partner who benefits from this situation.
What concretely needs to be reviewed?
It is clear that the property must be totally Algerian. Helping companies that are 100% Algerian in order to be able to export, that I accept.
If it is simply to help a foreign company that comes to do all its added value outside while benefiting from a very low cost of gas, no.
In other words, should Algeria sell gas more expensively to foreign exporting companies?
Absoutely. If the manufactured product is intended for export, the exporter must pay the price. While the price of gas internationally was $38, gas was sold here at $0.25 per million BTU.
It’s still ridiculous. This is an advantage that we gave to all companies that are set up in Algeria. Now it’s time to review.
The price of a barrel of oil is close to 100 dollars. Is this trend sustainable?
I said a while ago that oil prices were going to stabilize between $57 and $80 a barrel. And that there were always going to be peaks at 90 dollars, depending on the circumstances.
Today is the Ukrainian crisis. This increase is therefore cyclical. The most serious studies show that the average price of a barrel of oil in 2022 will be 80 dollars.
