Brussels, 17/02/2012 (Agence Europe) - Algeria is being pressurised by Europe to review the nature of hydrocarbon export contracts, says Yousef Yousfi, Minister for Energy and Mines, reported in local media. Reference was mainly being made to an interview granted to Radio Algeria International.
The backdrop to these media reports is the forthcoming signing of a strategic energy agreement to be sealed during a visit that has not yet been officially announced by the European energy commissioner. When quizzed on the matter, in the presence of Spain's foreign minister on visit to Algiers, Mourad Medelci, Algeria's Foreign Minister, confirmed this intention and gave his assurance that the agreement will be in the form of a memorandum to be finalised and initialled in due course, with a view to laying the foundations and principles for medium term cooperation with all European countries. No further details have been given.
Yousfi was firm regarding European pressure to have gas export contracts of short duration, saying: “We cannot invest colossal amounts unless we are certain that the contract is for 20 to 30 years”. However, he said, Algeria does not intend to completely close the door to small companies based in Europe that work on the basis of short-term contracts with sales of small volumes of hydrocarbons. According to the Moroccan press, the minister said European countries should resign themselves to long term contracts for the larger export volumes. He believes that the global market needs 40 million barrels a day over the next ten years, not only to offset the fall in production from existing oilfields but also to cover future needs. In order to increase output, the country may resort to foreign partners. The Algerian national petroleum corporation, Sonatrach, will act as the opposite number for non-Algerian operators. The state always encourages partnerships with companies specialised in hydrocarbons and possessing exploration technology, but within the limits of Algerian regulations. Such partnerships must always be in strict compliance with the 51/49 rule specified by law.
The minister also spoke of talks underway with Italy for an undersea gas pipeline 2,000 metres long. Both sides, Yousfi said, have agreed to allow several months in which to come to the decision.
There is also scope for cooperation when it comes to renewable energies. This includes the completion, in 2011 in Hassi R'mel, of a 150 megawatt (MW) plant, for which 30 MW come from solar power. There is also the construction of a new study plant in Ghardaïa, a project for the production of electricity from wind energy in Adrar, and the upcoming launch of the solar energy project in Rouiba. For cooperation possibilities with Europe, he said, “we are ready to enter into partnerships, either within or not within Desertec, on condition that equipment is manufactured in Algeria”. According to the minister, there is also great shale gas potential. (FB/transl.jl)