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Algeria not to make up for Russian gas exports to Europe

  • By Al Mayadeen Net
  • Source: Agencies
  • 27 Feb 2022 23:07
  • 1 Shares
3 Min Read

Algeria says it would not make up for the deficiency of gas in Europe in light of Western sanctions on Russia.

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  • Algeria's national oil company Sonatrach
    Algeria's national oil company Sonatrach

Reports about Algeria compensating the European market for Russian gas supplies are completely false, national oil giant Sonatrach said Sunday.

Algerian media quoted a senior Sonatrach official as saying the company would not sell any additional energy supplies to Algiers' partners outside the framework of existing futures.

Algiers will not be increasing its gas supplies to Europe without existing futures, the Sonatrach official said, highlighting that those talking about Algerian gas making up for Russian gas are completely ignorant of the reality of Russian production and exports.

Regarding media reports suggesting the possibility of Algeria compensating for Russian gas exports in Europe in light of the Ukrainian crisis, the source said the claims were mere "dreams" and words by those who have no information about the extent of Russian exports, which amounted to 240 billion cubic meters, and its production capabilities exceed 600 billion cubic meters.

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For comparison, Algeria produces around 130 billion cubic meters a year and exports 40 billion cubic meters.

The official said gas, unlike oil, cannot be stocked, and all that is produced is sold, noting that investing in exploration, production, and transport would require a market, and that requires futures to market this product.

"It is impossible to store gas, and the gas we have and that we can produce is already under medium-term and long-term futures of up to 10 years with partners, and the agreed-upon prices are of a special nature; they change with any changes to the price of crude oil and the international energy market in general," he said.

Russian gas exports to Europe could be impeded in light of the Western sanctions on Moscow due to the special military operation in Ukraine.

Russia had for months been warning of the threat posed against it by NATO's attempts to expand eastward, which happened simultaneously with an increase in NATO military activity along Russia's borders, and batches of lethal weapons being sent to Ukraine, prompting Russia to request security guarantees from the West. Washington failed to provide the guarantees. 

After the West did not respond to Russia's demands, and amid Ukrainian shelling on the Donetsk and Lugansk People's Republics, President Vladimir Putin initiated a special military operation in Donbass. 

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