In addition to Donald Trump's desire to make more room for American gas on the European market, another factor risks further shaking up the energy map of the European Union, the main destination for Algerian gas.
Will Algerian deliveries be impacted by the entry into force in 2027 of the European directive relating to “ sustainability » ?
Qatar, one of the world's largest exporters of LNG (liquefied natural gas), is already threatening to withdraw from the old continent's market if this directive were to be applied.
Qatar threatens to withdraw from the European gas market
Friday, December 20, the American president-elect, who will take office on January 20, called on the European Union to buy more American LNG and oil, otherwise he would impose high taxes on European products, as he plans to do so for goods from China, Mexico and Canada.
Donald Trump wants to reduce his country's deficit in its trade in goods with the EU (-155 billion euros). In services, however, the United States has a surplus with 104 billion euros.
The United States is a major energy supplier to the EU, buying 2 million barrels/day of oil from them. This is half of American exports of black gold.
In the first half of 2024, 47% of European LNG imports came from the United States. The other main suppliers to the EU are Algeria, Russia, Norway, Azerbaijan and Qatar.
In addition to this American pressure, the European energy map risks being further disrupted by the repercussions of the so-called DSDDD directive or ” duty of vigilance of companies in terms of sustainability ».
The directive requires large companies to ensure from 2027 that their entire chain of activities does not contravene human rights and environmental protection. A fine of up to 5% of the turnover of refractory companies is planned.
Will Algerian gas be affected by new European legislation on sustainability?
Qatar, which supplies 10% of Europe's gas needs, does not want this directive and is already threatening to stop its gas deliveries to the EU if fines are imposed on its gas company.
« If it turns out that I lose 5% of my income by going to Europe, then I will no longer go to Europe “, Qatari Minister of Energy, Saad Al Kaabi, declared to the Financial Times on Sunday, December 22.
« This 5% revenue generated by QatarEnergy also means 5% revenue for Qatar “, he added.
What impact will the application of the new directive have on Sonatrach and Algeria? Neither the Ministry of Energy and Mines nor Sonatrach have reacted yet.
« It will affect all suppliers in Europe and first of all the United States whose gas comes from shale », responds to TSA an energy expert for whom it is a “ previous » which is added to the carbon tax for petrochemical products (fertilizers, cement and steel in particular) which “ would go very badly for the EU if it implemented it ».
Sonatrach: a billion dollars for “ reduce your carbon footprint »
The renegotiation of the association agreement between Algeria and the EU should “ address these potential issues » because, adds this expert, “ we are and will be increasingly exporters of petrochemical products and energy-intensive products such as cement, steel, fertilizers, etc. »
The Algerian energy expert says he expects other responses, like that of Qatar, because, he emphasizes, “ the balance of power has changed ».
Algeria supplies Europe mainly with natural gas via two gas pipelines connecting it to Spain and Italy. Last October, the Algerian gas giant Sonatrach became Europe's leading gas supplier with 1.3 billion euros during the same month, or 21% of EU imports.
Algeria is also a major supplier of LNG via LNG tankers, having shipped 12.9 million tonnes to the EU in 2023, according to figures from the American platform Energynews. Buyers of Algerian LNG are mainly Turkey and three European Union states, France, Spain and Italy.
To reduce its carbon impact, the Sonatrach group has undertaken a gigantic project to plant more than 423 million trees in Algeria for a billion dollars over 520,000 hectares. This project will extend over a period of 10 years.
The planting of more than 420 million trees in Algeria “ will allow Sonatrach to generate carbon credits, which will help us prove that the Algerian product has a very low carbon footprint and will have a greater value on the international market “, declared the CEO of the Algerian hydrocarbon giant, Rachid Hachichi, on December 11 during the signing of a memorandum of understanding with the General Directorate of Forests on this reforestation operation, the most important in the country's history.
In addition to afforestation, Sonatrach's strategy to reduce its carbon footprint is also based on the reduction of flaring and the gradual introduction of green energies.
« Gas has a future in the energy transition, we must ensure that it is produced in the best conditions and respects the environment. This concerns in particular the reduction of various emissions of CO2 and methane. This involves moving towards compensation solutions to mitigate the effects of these emissions on the environment. », explained last July the central HSE director at the Sonatrach Group, Ouamer Abdelkrim, in an interview with Algerian Radio.
Sonatrach’s strategy to reduce its carbon footprint is broken down into three main areas: reduction of “ fugitive emissions, including flaring », « energy efficiency » et « compensation for all that is consumption », Listed the same manager. The objective is to “ achieve balance between our emissions by 2050 », added Mr. Ouamer.
The Algerian gas giant has already taken “ the commitment to reduce flaring in Algeria to -1%, according to the same official. Flaring reduction began 30 years ago. Since 2020, the decrease is 28% since 2020, which is equivalent to one billion standard cubic meters ».
Added to this is the gradual introduction of green energies such as “ green hydrogen where we are at the pilot stage » and the “ solar which is already introduced at our installations », continues Mr. Ouamer.
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