Algeria-EU talks on long-term gas deals

Algeria’s energy minister will seek more investment from European Union states and discuss the renewal of long-term gas supply contracts with EU members during talks this week in Brussels, the ministry and an Algerian source said yesterday.

Most of Algeria’s long-term gas accords with EU nations are due to end between 2018 and 2019, just as the North African oil and gas producer grapples with a slide in crude prices, which have tumbled from above $100 a barrel in mid-2014 to $55 now.

Energy Minister Nourredine Bouterfa was to meet EU Energy commissioner Miguel Arias Canete this week to “facilitate and promote European investments in the sectors including natural gas, renewables and energy efficiency,” the ministry said.

Long-term gas contracts would also be on the agenda, the source familiar with the matter told Reuters.

State energy firm Sonatrach officials said this year Algeria would adopt a new approach to its gas contracts, no longer demanding deals lasting 20 or 25 years and instead seeking ten to 15-year contracts.

Algeria, a major gas supplier to Europe, wants more European investment in its industry but has faced EU calls to cut bureaucracy and offer more flexibility to investors.