Page 47 - Nigeriaone mag 2 edition en

Algeria benefits from the Russo-Ukrainian crisis

Groupement Reggane Nord, Algérie © CC BY-SA 4.0

The Algerian soil is rich in natural resources, with The possibility of a decrease or even a total shut-
an estimated 2400 billion cubic meters of gas. The down of Russian natural gas supplies to Europe
country is the seventh-largest exporter in the world immediately attracted Algeria’s attention.
and the first on the continent, with a number of Additionally, the country has pledged to boost de-
particularly encouraging discoveries being made liveries to France via the Transmed pipeline, which
regularly, suggesting that the economy will soon be is presently underutilized.
booming. We can also expect bright prospects for The pipeline, built-in 1978 and put into operation
the African continent in light of the Russo- in 1983, is the largest one in Africa. It extends over
Ukrainian crisis and its economic consequences. 2,475 km and has a capacity of 110 million cubic
Indeed, if Russia used to supply 47% of European meters per day, although it currently transports
gas before the crisis, the restrictions recently only 60 million cubic meters. The new agreements
imposed by Europe will necessarily force the old provide an additional 9 billion cubic meters of gas
continent to turn to new suppliers. Algeria, which per year to be delivered via the Transmed by 2023-
until now has supplied just 11% of European gas, is 2024.
likely to acquire new market positions. In this sense, improving the Algiers-Rome axis will
Moreover, it is in anticipation of this increase in be of fundamental importance in allowing Algeria
future demand that a historic agreement between to meet a possible rise in European demand by en-
Sonatrach (Algerian Company) and Eni (Italian hancing its export capacity.
Company) has been signed. It is the first step for If the Transmed represents a formidable tool for
Italy to address the energy consequences of the transporting Algerian gas to Europe via Tunis, Al-
conflict between Ukraine and Russia which covers giers is however not able to fully offset the decline
more than 40% of Italy’s gas needs. The partner- in Russian gas supply. As Abdelmajid Attar, former
ship is also a way for the companies to establish a Algerian Minister of Energy said: “At most, Algeria
gas price to be used for sales in 2022-2023, based could provide the European Union with 2 or 3 bil-
on market conditions. lion m3 more.” Other European countries are expe-
cted to rely on Africa to meet rising gas demand.

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