The repercussions of the war in Ukraine on the energy market are, according to several experts, an opportunity for Algeria which has repositioned itself on the world market. Faced with increased demand and geostrategic tensions, but also pressure from the EU, which is seeking to reduce its energy dependence on Russia, Algeria appears to be a “close” and “reliable” alternative. Algerian gas reserves are enormous, but for lack of transport infrastructure, Algeria will not be able to meet European needs.
Algeria does not currently have an available and sufficient quantity of gas to meet European needs, although its reserves are enormous. For lack of investment, during the last fifteen years, Algerian gas export capacities have declined.
Algiers is trying to reverse the trend. A report from the Algerian Ministry of Energy and Mines from the beginning of April indicates the increase in the export of Algerian gas by 25% over one year, between February 2021 and February 2022. The ministry claims that it will further increase its export by 25% by February 2023.
A short-term alternative
According to several experts, the increase in the price of oil and recent discoveries will allow Algeria to accelerate investments in the field of energy. Sonatrach, the Algerian national company for the production and export of oil and gas has announced an investment program of 40 billion dollars for the period between 2022 and 2026.
A recent report by the Organization of Arab Petroleum Exporting Countries (Owapec) notes that Algeria ” was first in gas exploration among Arab countries during the first two thirds of 2022 “. In the short term, Algeria helps out. Its gas deliveries to theItaly for example will increase by 10 billion m3 per year.
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