Main market for Algerian gas, the European Union (EU) is ordered by Donald Trump to buy more hydrocarbons from the United States.
Will the injunction of the elected American president, who will take office on January 25, have an impact on Algerian deliveries to the old continent?
Algeria became the leading gas supplier to the EU last October, with exports amounting to 1.3 billion euros in value during the same month, or 21% of total imports from this space. Algeria is followed by Russia, the United States, Norway and Azerbaijan.
Connected to Europe by two gas pipelines (to Spain and Italy), Algeria increased its gas deliveries to the Old Continent after the outbreak of war in Ukraine in February 2022, and this, on demand. of Europe which wishes to reduce its dependence on Russian hydrocarbons.
The return of Donald Trump to power in Washington is a new factor that risks upsetting the current global energy map. In the trade showdown that he promises to the United States' main partners, Trump wants to impose more American gas and oil on Europe.
Hydrocarbons are the lever he intends to use to reduce his country's abysmal trade deficit compared to the EU in trade in goods. A deficit which amounts to 155.8 billion dollars. The balance of trade in services is, however, in favor of the United States with 104 billion euros.
Friday, December 20, Donald Trump, who will take the reins of the United States in January 2025, announced on his social network Truth Media that he informed the leaders of the European Union that if they do not buy more American gas and oil to reduce the imbalance in trade in goods, he will impose very high customs taxes on goods from the EU.
Trump calls on Europe to buy more American gas: what effect for Algeria?
Until then, Donald Trump had announced heavy taxes on goods from China, Canada and Mexico.
The European Commission has expressed its willingness to discuss with the president-elect in order to consolidate the strong relationship with the USA, including in the energy sector.
An EC spokesperson indicated that the EU remains committed to the objective of gradually freeing itself from Russian energy deliveries and diversifying its sources of supply.
U.S. hydrocarbon imports increased significantly after the outbreak of war in Ukraine in February 2022.
The EU currently buys 2 million barrels/day of American oil, or half of American exports. In the first half of 2024, the United States supplied 17% of the EU's oil needs and especially 47% of its LNG (liquefied natural gas) imports.
Given this structure of American deliveries, there should not be a considerable impact on Algerian exports of natural gas via pipeline. If Europe were to increase its purchases from the United States, it would be additional LNG.
Algeria also has shares in the European LNG market.
According to the Energy News platform, Algerian LNG exports to Europe amounted to 12.9 million tonnes in 2023, compared to 10 million tonnes in 2022. According to the same source, this is the highest level of Algerian deliveries since 2010.
The largest European customers of Algerian LNG within the European Union are France (1.5 million tonnes), Italy and Spain (950,000 tonnes each) in the first half of 2024.
Algeria's first European client is not an EU country. This is Turkey (2.17 million tonnes during the same period).
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