Algeria Could Increase Export by 54 Bcm, Say Bruegel Analysts

The current economic and geological situation could pave the way for stronger ties between Algeria and the EU in the natural gas sector, Simone Tagliapietra and Georg Zachman wrote in a report published on Tuesday. 

Using 2013 data, the two Bruegel analysts reported that Algeria’s under-utilised natural gas export infrastructure would allow for additional 54 bcm of export, mainly through pipeline (29 bcm) and the remaining through LNG facilities (24 bcm). In 2013, Algeria exported 40 bcm of gas, according to BP data. 

‘The magnitude of the 54 bcm of unused capacity is impressive if compared, for example, to the Southern Gas Corridor: a major EU natural gas supply diversification project, which is expected to deliver only 10 bcm/y to the EU by 2020’ reads the note.

Recalling the recent visit of Miguel Arias Cañete to Algiers, the two researchers also argued that the cooperation currently hinges on natural gas, but it should increasingly focus also on energy efficiency and renewable energy. 

‘According to BP, the country owns the tenth largest proved natural gas reserves in the world (4.5 trillion cubic meters).’ 

EGYPT 

Last week, Germany-based Siemens signed a €8 billion contract for high-efficiency natural gas-fired power plants and wind power installations in Egypt.  

‘The orders expand on the memorandums of understanding announced at the Egypt Economic Development Conference (EEDC) held in Sharm El Sheik in March 2015’ Siemens wrote on its website.  

On Tuesday, another German company, E.ON, said it is investing in energy efficiency.

‘As part of its co-investment activities, E.ON is acquiring a stake in the US start-up Enervee’ the company said in a press release.  

At the same time, after investments unveiled by Italy’s ENI in Egypt, countries are increasingly paying attention to the country led by Abdel Fattah el-Sisi.

‘The institutional background to reaching new levels in the trade and intercompany relations between Hungary and Egypt is now provided as a result of the work conducted over the past period, Minister of Foreign Affairs and Trade Péter Szijjártó said on Friday at the Hungarian - Egyptian business forum held in Budapest’ the Hungarian government wrote on Tuesday.