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The summit will offer participants a chance to coordinate investments and ties with purchasing countries and to further develop production capacity. The summit will provide a venue to showcase Algeria’s growing role as a secure and reliable energy supplier.
Algeria is sporting an ambition to emerge as a critical supplier of natural gas for European countries seeking to lessen their dependence on Russia. The Northern African country yesterday (Thursday) welcomed envoys from energy-rich nations to a key summit. Algeria is hosting leaders from 13 other nations in its capital of Algiers, including Russia, Iran, Qatar, and Venezuela as the industry confronts waning demand for oil and gas and new competition from renewable energy sources.
The summit will offer participants a chance to coordinate investments and ties with purchasing countries and to further develop production capacity. The summit will provide a venue to showcase Algeria’s growing role as a secure and reliable energy supplier.
Algerian President Abdelmajid Tebboune in a message sent to the summit participants said that natural gas was increasingly in demand as a crucial energy source for socio-economic development, being one of the main clean and environmentally friendly alternative energy sources.
Algeria has emerged as the continent’s second-largest pipeline supplier of gas, after Norway. It is the top supplier of gas to Spain and also Italy, whose Premier Giorgia Meloni visited last year. Algeria’s state-owned energy company Sonatrach recently signed a deal to sell natural gas to Germany’s VNG. Despite aggressive plans to expand production between now and 2030, Algeria has struggled to deliver more gas to Europe at the pace promised. Sonatrach continues to confront infrastructure needs, slowing demand for gas and new competition from countries like Qatar and the United Arab Emirates.
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Algeria has made preliminary moves to invest in renewable energy, specifically green hydrogen power, but continues to be heavily invested in fossil fuels. Oil and gas revenue accounted for 38% of the country’s budget from 2016 to 2021, according to World Bank figures.
