Algeria has informed this Monday of the start-up of two new natural gas fields
Oct. 10 () –
The EU Commissioner for Energy, Kadri Simson, visited Algiers on Monday and discussed with the Algerian authorities Brussels’ intention to take collaboration on energy “to the next level”.
“Relations in the field of energy between Algeria and the EU and its Member States are historic, strong and deep. We want to consolidate them and further develop an energy partnership that is mutually beneficial for the people of Algeria and Europe”, he stressed. Simson during his visit to Algeria, according to a statement from his department.
Simson has met with the Algerian Minister of Energy, Mohamed Arkab, whom he has proposed to hold high-level meetings with on an annual basis.
In addition, Simson has pointed out three specific areas to increase collaboration: gas, renewable energies and the green hydrogen industry.
The main priority is the export of Algerian gas to Europe after the crisis caused by the war in Ukraine and the dependence on Russian gas in central Europe.
“Algeria is an important and reliable supplier of gas to the EU (…). We both benefit from a growing volume of Algerian gas that may be available for export to Europe,” Simson stressed. To this end, the commissioner has advocated the exploration of new deposits with the participation of European companies.
In renewable energies, Simson referred to solar and wind power and highlighted Algeria’s geographical proximity to Europe. “It has great potential to become a global leader in the production of clean energy for local consumption, but also for export, also to Europe,” he pointed out.
For this, it has proposed resorting to the European Fund for Sustainable Development and the European Investment Bank and the European Bank for Reconstruction and Development.
Lastly, he referred to the green hydrogen industry that “would facilitate a green transition in Algeria by making the national industry greener”. “We have to work together to create the right conditions to attract investment and foster partnership between European and Algerian companies,” he said.
NEW GAS FIELDS
This same Monday, two new hydrocarbon deposits in Berkine Sur were reported to enter the production phase as a result of a contract signed between the Algerian state company Sonatrach and the Italian company ENI.
The two fields began to produce in September, six months after the contract entered into force “thanks to the development in accelerated mode”, Sonatrach highlights in a statement collected by the TSA portal.
These two fields generate one million cubic meters of gas a day and 4,000 barrels of associated liquids. By the end of the year, production will increase to two million cubic meters.
“These additional quantities, added to the quantities produced by the two North Berkine fields, which came into production in July 2022, increase the volume of gas produced by the Sonatrach-Eni association and contribute to the increase in exports of Algerian gas destined to the European market”, highlighted Sonatrach.
CRISIS WITH ALGERIA
Algeria announced on June 8 the suspension of the Treaty of Friendship with Spain in another step in its reaction to the Government’s decision to support the Moroccan autonomy plan for the Sahara.
Initially, Algeria proceeded on March 19 to call its ambassador in Madrid for consultations and later threatened to raise the prices of natural gas that it exports to Spain, although the Algerian authorities have always said that they will comply with the supply.
The same day that the suspension of the 2002 Treaty of Friendship became known, a circular from the Professional Association of Banks and Financial Entities (Abef) was also published, announcing the freezing of direct debits for foreign trade operations with Spain.
The Government then went to Brussels, since foreign trade is European competence, with the premise that Algeria could have breached the Association Agreement with the EU, and the European Commission warned that it could act if necessary.
In turn, the Algerian Executive criticized Spain for wanting to resolve in Brussels an issue that it considers bilateral and hinted that the order to suspend commercial operations had not been issued.
Moreover, days later the Algerian president, Abdelmayid Tebune, proceeded to dismiss the Minister of Finance, Abdelarramán Raouya, who was ultimately responsible for the bank freezing order, although he did not clarify if this was the reason.
