Algeria  Building the Gas Bridge

Algeria, the world’s fifth largest gas producer, is supplying around a quarter of the EU’s gas imports, and is hoping to expand further into that market. Its valuable position is firming with pipelines under construction to southern Europe and liquefied natural gas (LNG) deals with northern Europe. And although Russia remains the major gas supplier for the EU, Algeria’s flexible gas sector and geographical location are factors playing in its favor. On July 12, Algeria and the EU finalized an agreement dealing with territorial restrictions, allowing companies of EU member states that import Algerian gas the right to resell it either within their own domestic markets or to third-party countries. In return, Sonatrach, Algeria’s state oil and gas company, will have the right to a share of the profits earned by European companies, for LNG contracts only. Sonatrach will also be allowed to sell LNG shipped by tanker directly on