Algeria welcomes energy-rich nations on Thursday in a 3-day summit at the 7th Gas Exporting Countries Forum (GECF). The African country looks to position itself as the main supplier of natural gas to European nations who seek to be independent of Russia.
The 3-day summit will be held in the country’s capital, Algiers, as 13 countries which include Russia, Iran, Qatar and Venezuela will have their leaders represented.
The GECF summit is a big advantage for Algeria to show the world that it can be a reliable energy supplier. It will also give the participating countries a field to develop relationships which would boost and enhance production capacities.
The Algerian President talked about how the quality gathering is a testament to how natural gas is in demand for socio-economic development. it is also a friendly alternative energy sources.
“natural gas is increasingly in demand as a crucial energy source for socio-economic development, being one of the main clean and environmentally friendly alternative energy sources.”
President Abdelmajid said
Algeria has tipped itself to become a proponent supplier of gas to European countries, as it is the second-largest supplier of gas after Norway. This is coming at a point when European countries want to be less dependent on Putin’s country.
The country has also been doing good for itself as one of its state-owned energy companies, Sonatrach just signed a deal to become a German Company VNG gas supplier.
An oil and gas industry analyst, Karim Allam said the gathering would give a chance to advocate for gas as “a product of the future”.
He also said the North African country wants to use this opportunity to give the country financial security and also make the country a respectable and credible producer of natural gas.
Algeria “wants to finalize long-term contracts that will provide security for the future, while seeking to bolster its status as a credible and serious producer country,” he said.
Karim said
A reality check for Algeria as they have struggled to meet up with the delivery of gas to Europe even though the country is determined and dedicated to increasing production from now to 2030.
In addition, Sonatrach has continued to face technical and infrastructural problems which have slowed supply and that has brought competitions from Qatar and UAE.
Algeria is also growing in population like its North-African brother, Egypt and that would lead to increase in energy demands.
Alberto Rizzi, a European Council Researcher on Foreign Relations said there is the need to balance export needs with local needs while there is also need to go all out to become a giant in the production of natural gas.
“There’s a growing concern over the necessity to balance domestic needs with the export commitment. And there’s a game over who the last man standing is — who can produce at the price, volume and with the least pollution.”
Alberto said
According to World Bank , oil and gas revenue made up 38% of the country’s budget from 2016 to 2021.
As a result the country is continually investing in fossil fuels. However, they have made financial preparatory moves commiting to renewable energy. ‘Green hydrogen power’ to be precise.
