Gas power: Algeria flexes its muscles

Algeria is flexing its considerable muscle in the gas industry, expanding its distribution network, pushing for price increases and also being among the countries actively promoting discussions on forming a cartel of natural gas producing states, similar to the Organization of the Petroleum Exporting Countries (OPEC). Algeria is well placed to exercise its influence in the sector, having the eighth largest gas reserves in the world, in excess of 4.5 trillion m3, with more stocks being identified all the time. On March 26, Norwegian firm Statoil announced it had struck gas with its first exploration well at Hassi Mouina in the Sahara, a site it is developing in partnership with Algeria’s state-owned energy group, Sonatrach. Algeria supplies the EU with 10% of its gas needs, with much of the gas being transferred directly via the Transmed network of pipelines beneath the Mediterranean. This figure is set to rise to meet