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Europe Daily Bulletin No. 9315
Contents Publication in full By article 18 / 40
GENERAL NEWS / (eu) eu/algeria/energy

Algiers assures Union it will be reliable partner

Brussels, 27/11/2006 (Agence Europe) - On the sidelines of a conference on energy, which was held last Sunday at Oran, the Algerian Energy Minister Chakib Khelil assured the Union that his country- which, supplying 12% of Community imports, is the third largest supplier of gas to the EU after Russia and Norway- "will not use its gas as a political weapon". The cooperation agreement concluded in August between the Russian and Algerian gas companies, Gazprom and Sonatrach respectively, "does not herald a new energy cartel despite it unnerving the EU"", he told the Dow Jones, thus responding to fears expressed by Andris Piebalgs, who stated that the EU should "remain vigilant". "The creation of a cartel may not raise questions of price, but certainly questions of supply. We have learnt that we can no longer consider the security of our supply as a guaranteed thing", the Energy Commissioner explained, in reference to the gas conflict between Russia and the Ukraine of earlier this year. "We have no intention of putting any kind of pressure on Europe. We know that our gas is the most competitive for Europe and we are only 200 km away from Spain", Mr Khelil insisted, adding that Algeria and the EU were involved in a "relationship of mutual dependency". "There is no question of a cartel. We have merely signed a memorandum of understanding which gives a general framework for future technical cooperation. We have signed the same kind of agreement with Royal Dutch Shell and Statoil", he added. Mr Khelil also indicated that Algeria hoped to increase its export capacity to Europe by building two new pipelines to Spain and Italy- Algerian gas covers 44% and 33% respectively of their energy needs- and by signing long-term contract with these countries. The objective is to increase its gas supply by nearly 29 billion cubic metres a year between now and 2010, which will double current supplies. Furthermore, Algeria plans to increase its GNL exports to 12 billion cubic metres a year between now and 2010, half of which will be destined for Europe. (eh)

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