Tensions between Algeria and Europe impact on the gas market

Following Russia's brutal invasion of Ukraine last February, Europe began to draw up plans to reduce its energy dependence on Moscow. For this reason, the continent's countries began to look for new gas markets or closer relations with nations rich in natural resources.

In a context of war and energy crisis, Europe looked to the Gulf - with special attention to Qatar - as well as to Azerbaijan - with whom it agreed in July to increase gas supplies - and Algeria.  

The North African country has been one of the main energy partners of European nations such as Spain, until the crisis between the two following the political change in Madrid over the Sahara issue. Italy has been another state that has deepened ties with Algeria in this regard, signing multi-million dollar gas agreements. Lucia Calfossa, head of Italy's Eni, declared that 'the alternative to Russian gas will come mainly from Algeria', noting that supplies will double by 'some nine billion cubic metres a year'.

Similarly, France has sought to improve ties with its former colony after years of rifts and tensions. To this end, French President Emmanuel Macron travelled to Algiers last August, where he agreed with his Algerian counterpart, Abdelmadjid Tebboune, to establish a 'renewed partnership' through the so-called Algiers Declaration.  

However, despite Europe's strong need to find new energy allies, there is still a strong mistrust of Algeria. For months, analysts have warned that Algeria could use gas as a weapon, just as Russia did. Indeed, as Al-Arab reports, the Franco-Algerian agreements are being hampered by Algeria's demands, such as linking negotiations to politics.

Paris had hoped to conclude talks on the gas deal before this year, thereby increasing its gas imports by 50%. However, Algeria has officially postponed the negotiations until 2023. The Arab newspaper reports that the reason for this delay is Algeria's pressure on France to pay compensation for the colonial period, as well as concessions related to visas.  

Negotiations between French energy company Engie and Algeria's state-owned Sonatrach remain stalled due to disagreements over the period of the counterparts, as well as pricing.

In addition to the disagreements, analysts and experts point to the possibility of Algeria's failure to stabilise European markets. "They may not even meet the normal amount of supply," says Cyril Wiedershoven, quoted by Al-Arab, of American Energy Price.

On the other hand, the influence of Russia and China on Algeria is worth noting. Moscow is the main arms exporter to the North African country. The two countries have also conducted joint military manoeuvres in the Mediterranean. Since the beginning of the war, Algiers has remained a key ally of Russia. They have also continued to deepen their relationship through meetings between high-ranking officials, such as Russian Foreign Minister Sergey Lavrov and Algeria's Chief of General Staff Said Chengriha.