Sonatrach Urged to Invest in Qatar, Iran to Maintain Its Share in European Gas Market, Expert

Energy expert, Mourad Preure, has urged the government to set up a strategy that would permit to Sonatrach hydrocarbons giant to launch strong alliances with Qatari and Iranian companies, and ultimately be able continuing exporting natural gas to Europe, to go inline with radical changes that are to occur as by this September amid the entering into service of North Strom gas pipeline which is to carry Russian natural gas to Northern Europe via the Baltic Sea.

Mr Mourad Preur told Echorouk reporter that the North Stream pipeline is meant to carry 55 billion cubic meter gas per year, to Europe, stressing that Russia is aiming at increasing its share in the European market up to 25 percent, noting that Algeria’s share is around 10 percent, and 6 percent to Qatar, who both took advantage of the crisis raged between Ukraine and Russia over the aforementioned gas pipeline.

The expert further mentioned that the real threat to Algeria natural gas exports to Europe will come from the South Strom gas pipeline which is to enter into service as by 2015, with 63 billion cubic meters per year capacity: an equivalent quantity to the whole Algeria gas exports.

Algeria has to start negotiations with Europe in order to maintain a foot in this market, amid the high competition imposed by Qatari and Russian gas, Mr Preur said, adding that the North African country would not be able to face such a competition, and urged it to enable Sonatrach to invest in the field of gas and electricity distribution in Europe, and also try to enter the Qatari and Iranian market as a producer.