Algeria occupies a major position on the European gas scene, in particular thanks to its two gas pipelines connected to Spain et Italy. This strategic infrastructure, supplemented by deliveries of liquefied natural gas (LNG) by sea, allowed Sonatrach to become the leading gas supplier to the European Union in October 2024, with exports representing 21% of European imports, or 1.3 billion euros. Algerian LNG shipments reached 12.9 million tonnes in 2023, mainly to Turkey, France, Spain and Italy.
The new European tax shakes up the energy maps
A European directive on sustainability, planned for 2027, threatens to redraw the map of gas supplies on the continent. This legislation will require large companies to guarantee respect for human and environmental rights throughout their chain of activities, under penalty of fines of up to 5% of their turnover. Faced with this perspective, the Qatarwhich covers 10% of European gas needs, has already expressed its opposition. The Qatari Minister of Energy, Saad Al Kaabihas clearly expressed its intention to cease deliveries to Europe if financial penalties were to be applied to QatarEnergy.
The American offensive on the European market
Pressure is also increasing on the American side. The president-elect demandedEuropean Union that it increases its purchases of American LNG and oil, brandishing the threat of high taxes on European products. THE UNITED STATES already provide 47% of European LNG imports in the first half of 2024, and two million barrels of oil per day. This commercial offensive aims to reduce the US deficit in trade in goods with the EU, which reaches 155 billion euros.
Sonatrach’s environmental response
Faced with growing European environmental requirements, Sonatrach has launched an ambitious reforestation initiative. The project plans to plant 423 million trees over 520,000 hectares, for an investment of one billion dollars over ten years. This environmental strategy also includes the reduction of flaring, already reduced by 28% since 2020, and the gradual integration of green energies, in particular green hydrogen and solar. The CEO of the group, Rachid Hachichirelies on these actions to generate carbon credits and promote Algerian gas on international markets. The company aims to balance its emissions by 2050, thus marking its desire to adapt to the new requirements of the global energy market.
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