Algeria, EU Seek to Revive Partnership (Update)
Updates with comments after the meeting at end
EU climate and energy commissioner Miguel Arias Canete will visit Algeria November 20 for high level meetings to revive the energy partnership between the EU and Algeria. There, he will meet Algeria's energy minister Mustapha Guitouni. The EU-Algeria energy dialogue covers the areas of natural gas, renewable energies and energy efficiency.
The European Commission said November 19 that Algeria is a "reliable and competitive supplier of natural gas for the EU. Europe relies on Algerian gas for its security of supply, and Algeria relies on the European market for the security of demand. For the EU, the aim is to improve the legislative and regulatory framework for gas and make it more attractive for investors".
The commission also said that it wants to encourage a diversification of gas supply into the EU, with particular emphasis on LNG from various suppliers. Worth noting, however, is that three gas export pipeline systems link Algeria with continental Europe: two into Spain (Maghreb-Europe and Medgaz) plus one to Italy via Tunisia (Transmed).
In addition to the 150bn m3/yr to EU member states, the EU is supporting 14 LNG infrastructure projects that will increase capacity by an additional 15bn m3/yr by 2021, it added.
Algeria's energy ministry said its energy dialogue with the EU also touches on reform of the legislative and regulatory framework; the progressive integration of energy markets; the development of infrastructure of common interest; technology transfer and local development.
Update Nov.20: After the meeting with minister Guitouni, the European Commission told NGW that commissioner Arias Canete reiterated the importance of the cooperation between the EU and Algeria in the energy sector, in particular flagged the EU's continued interest in receiving LNG imports from Algeria, and also highlighted a new angle of EU cooperation - deployment of photovoltaic (solar PV) facilities in Algeria.
Algerian state news agency APS said Guitouni said that "talks are in progress" on extending Algerian gas supply contracts to EU companies that would otherwise lapse, and that Spanish companies had signed extended contracts. NGW reported in June that Spain's Naturgy (formerly Gas Natural) had agreed to extend until 2030 its long-term contract, currently covering 30% of the Spanish gas market, with Algerian state Sonatrach.
APS reported too that Guitouni expressed interest in new electricity interconnectors between Algeria and southern Europe but said that needed to be preceded by better interconnection of the Spanish and French power markets.