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Political situation in Algeria: Hydrocarbon sector still attractive

Published on : Wednesday, 17 July 2019 14:39   Read : 9 time(s)
Political situation in Algeria: Hydrocarbon sector still attractive

ALGIERS- Foreign firms continue to show special interest in the Algerian market of hydrocarbons, denying some "analyzes" about imminent disinvestment in the sector owing to the political situation in the country.

Algeria has managed to retain its customers and attract new ones during the worst periods it had gone through, thanks to its energy development strategy, based on partnership and fulfilment of commitments.

See also: Hydrocarbons: No disinvestment reported

The months that followed 22 February, date of the beginning of the peaceful popular protest for democracy and the change of the system, were marked by the signature of several major deals between Algeria and partner countries.

These long-term agreements, mainly for the supply of liquefied natural gas, are an additional proof of the effectiveness of Algeria's energy strategy and the attractiveness of its market in general and that of hydrocarbons in particular.

This was clearly expressed by Energy Minister Mohamed Arkab in an interview with APS, during which he said that despite the political crisis in Algeria, energy projects have continued to progress at normal pace, adding that "no withdrawal" of Algeria's partners has been recorded.

See also: Relations between Sonatrach, its partners develop in "normal way"

Among usual partners, Italy continues to reaffirm its commitment to further boosting its cooperation with Algeria, especially in the field of energy.

To that end, an agreement was signed on 16 May between the national hydrocarbon company SONATRACH and the Italian energy group ENI for the renewal of Italy's Algerian gas supply contract and the transport modalities via the pipeline.

SONATRACH and the Italian group have also expressed their willingness to speed up the development of their new oil and gas projects in North Berkine (south).

A month later, on 26 June, SONATRACH inked a deal with the Italian energy group "Ente Nazionale per l'Energia Elettrica" (ENEL) for the renewal of a gas sale contract for ten years.

These two deals are clear recognition of Algeria's reliability as a gas supplier to southern Europe.

Last modified on Thursday, 18 July 2019 20:12
Political situation in Algeria: Hydrocarbon sector still attractive