Algeria to strengthen energy links with the United States
By Said Jameh for Magharebia in Algiers – 17/05/2007, published 18/05/2007
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/
features/awi/features/2007/05/18/feature-02
Mohamed Meziane, chief of the Algerian oil and gas company Sonatrach, announced that Algeria is determined to increase natural gas exports to the U.S. market and ink a deal on civilian nuclear co-operation.
In a statement to local radio Sunday (May 14th), Sonatrach President and CEO Mohamed Meziane said the energy company wants to triple natural gas exports to the US from 4 billion to 12 billion cubic metres per year by 2015. Algeria is also seeking technical assistance from the US in developing its civilian nuclear capabilities.
Algerian energy minister Chakib Khelil met earlier this week with his US counterpart Samuel Bodman in Washington to address relations between the two countries in the oil sector and to discuss possibilities for expanding the supply of Algerian gas to the US market.
Speaking on Russia and Iran’s recent calls for the establishment of an OPEC-style consortium for natural gas, Khelil told the US Secretary of Energy that the agreement on natural gas recently ratified between Sonatrach and Russia’s Gazprom is an economic agreement akin to the contracts signed with European companies.
According to Meziane, Algerian gas in the US market currently represents only 5% of US demand, estimated at 100,000 cubic metres per day. Meziane appeared unphased by the competition Algeria faces within the US market, saying, « We managed to break into European markets, including the British [market], so why not other markets? »
Algeria presently exports more than 50 billion cubic metres of gas to international markets, and it hopes to increase this figure to 85 billion cubic metres by 2015.
As part of a new strategy for breaking into the global gas market, Sonatrach has decided to export 50% of its gas destined for external consumption through pipelines and 50% through massive gas and oil tankers headed primarily towards US and Asian markets.
Meziane asserted that, « Our interest is no longer directed solely towards European nations. »
In Washington, Khelil and Bodman also confirmed that Algeria and the US would sign a co-operation agreement on civilian nuclear energy early next month. Khelil said the agreement will allow for exchanges of experts and the development of operations techniques at the Argentine-built Es Salam reactor in Ain Oussera, Djelfa province and the Chinese-designed Nour reactor in Dararia, west of Algiers.
The Algerian minister’s statements came just weeks after French president Nicolas Sarkozy indicated his country’s readiness to assist Algeria in developing nuclear energy for peaceful purposes.
