Algeria’s oil minister, Chakib Khelil, said that the government will not commit to any further long-term contracts and will switch to a pricing regime that offers it the choice of renegotiating gas prices on a short-term basis.
Mr Khelil noted that it is essential for Algeria, claimed to be the world’s fourth biggest gas producer, to obtain a fair price and boost its revenues. The North African country is reported to account for around 11% of Europe’s gas imports and is also a major source for liquefied natural gas.
The news source noted that Algeria is developing new infrastructure to export gas to Europe, including the Medgaz pipeline to Spain, slated for commissioning in mid-2009, and the Galsi pipeline to Sardinia in Italy, expected to be completed by 2012.
Both these pipelines reportedly include long-term gas supply agreements. The Algerian oil minister noted that after the completion of these pipelines, Algeria will stop signing 15-year contracts.
