Gazprom open Algerian office, upbeat on cooperation

Russian gas export monopoly Gazprom opened on Monday an office in gas-exporting Algeria saying it considered joint projects with Algeria's Sonatrach in third countries, including asset acquisitions.

• The move comes after years of speculations that major gas exporting nations could set up an OPEC-style group to coordinate policies – a prospect that has alarmed the European Union and the United States, which have said it would be detrimental for global energy security.
• Speculation has subsided after Russia repeatedly played down the idea and following a failure by a high-level meeting by an informal gas exporters club in Moscow earlier this month to agree on the main principles and rules for the new body.
• Gazprom said in a statement the office — its first in Africa — will be in charge of Gazprom’s operations on the continent.
• “Broadly speaking, we are ready to consider options of joint presence (with Sonatrach) in all three key segments of the global gas market – American, European and Asian,” the statement said.
• Gazprom said it will study joint acquisitions with Sonatrach of energy production, refining and transportation assets in Russia, Algeria and in other countries.
• Gazprom and Sonatrach failed last year to sign a cooperation agreement after signing a memorandum of understanding a year before.
• The initial pact has sent jitters among European customers which fear that two of its largest natural gas suppliers could collaborate to drive prices higher. Russia and Algeria are the world’s largest and fourth largest gas exporters.