The Diplomat
Algerian energy company Sonatrach yesterday warned of the possibility of “recalculating” the price of gas supplies to Spain, in a context in which it anticipates “promising prospects” for European customers following the discovery of new fields.
Sonatrach’s CEO, Toufik Hakkar, acknowledged in statements to the Algerian news agency APS, reported by Europa Press, that gas and oil prices “have soared” since Russia launched a military offensive on Ukraine on 24 February.
Algeria “has decided to maintain relatively correct prices for all its customers”, but Hakkar does not rule out this being the case in the future. “We do not rule out recalculating prices with our Spanish customers”, he said.
Sonatrach’s CEO explained that the group wants to invest around 40 billion dollars (around 36.2 billion euros) over the next four years to research and exploit oil and gas fields, and he is optimistic about the future.
In the case of gas, it expects Algerian capacity to double in this time, “which suggests promising prospects for European customers”.
Delegations from the Portuguese and Italian governments recently visited Algeria to discuss, among other issues, the future of energy supply, in a context marked by the EU’s interest in reducing dependence on Russia.
In the case of Spain, relations have been affected by Pedro Sánchez’s government’s recognition of Morocco’s autonomy plan for Western Sahara. Algiers recalled its ambassador to Madrid for consultations as a sign of its displeasure.
Algeria has always maintained that it will not reduce gas supplies to Spain, but has not committed that it will not revise future prices once the contract with Naturgy, Spain’s main gas company for the period 2022-2024, comes to an end.
