Brussels, 15/05/2013 (Agence Europe) - In the near future, the EU and Algeria are to sign an agreement on energy. Information provided by the Algerian media, the official press agency APS, indicates that the European Council has approved the text of a strategic energy agreement between Algeria and the 27 countries of the European Union. This will open up a new era of cooperation between the two partners, sources familiar with the issue said on Tuesday.
According to an authorised European source, upon verification the exact information is that the Foreign Affairs Council of 29 May is due to adopt a memorandum of understanding entitled “EU-Algeria Memorandum of Understanding on Energy Cooperation”, which is said to be undergoing finalisation with regard to both its form and its substance. European Energy Commissioner Gunther Oettinger is likely to be in Algiers to sign the memorandum before the Ramadan period, end June/early July. Announced for early 2013, the signing of the agreement has dragged on because of the complex nature of validation procedures at the level of the European institutions, the Algerian agency states.
Algeria, which was tough in its negotiations on the agreement, now seems to openly welcome the progress made and the prospects that are opening up - with reference to a source “familiar with the dossier”, that is, an official communication that takes the form of a plea in defence. It is appropriate to put emphasis on this at a time when this country is seeking to enhance its cooperation with the EU, as can be seen from the recent bilateral meetings and especially the visit in April by Pierre Vimont, Executive Secretary General for the European External Action Service (EEAS).
APS writes that the partnership will give fresh impetus to Algerian-European energy relations by opening up new prospects for development in Algeria regarding conventional energy, new energies and renewable energies, as well as petrochemicals and the transformation of hydrocarbons in general. The agreement should also allow a rebound of investment flows in energy, that Algeria has been calling for so long, as well as technological transfer and implementation of projects in conventional and unconventional energies. Algeria alone, which is a major energy provider for the EU, accounts for between 13% and 15% of Europe's gas needs, states the “source familiar with the dossier”, reported by APS.
In this agreement, APS adds, Algiers has defended a return to investment in energy through upstream partnerships and, downstream, the EU - which is already bound by such agreements with Russia and Qatar - should secure its energy supplies. Algeria remains one of the rare reliable energy providers of the European continent but energy relations between the two partners have not always been good, observers say. The barriers imposed by the EU for deployment of Sonatrach (the national company that manages energy resources) on the European market have often penalised the Algerian group. APS points out that Sonatrach had severely criticised the European Commission directive banning energy producers from directly distributing their products on the European market. The Brussels directive to separate energy production, transport and distribution activities to combat highly concentrated energy markets had given rise to discontent among traditional providers of this continent such as Algeria and Russia. Sonatrach had said it was “injured” by the measure especially after having agreed to make enormous investment in the transport of gas. Algeria had also pointed a finger of blame at the lack of enthusiasm shown by European energy companies to invest in oil exploration and, APS affirms, the EU is firmly opposed to the creation of a petrochemical industry in Algeria through customs barriers imposed on Algerian fertilisers. APS is careful to recall that such barriers were abolished in 2011. (FB/transl.jl)