Algeria lifts the systematic and generalized subsidy of the prices of natural gas sold to industrialists and investors, national or foreign. The ceiling on the quantities to be subsidized was set by a ministerial decree, dated October 13, 2024 and published in the latest issue of the Official Journal. This revision of gas prices provides for a lowering of the subsidy threshold spread over five years. The annual consumption threshold from which gas prices will be freely negotiated is set at 200 million cubic meters for the period 2025-2026, 100 million cubic meters for 2027-2028 and 40 million cubic meters from 2029. Beyond these thresholds, the quantities of gas consumed will be paid at the rate negotiated and set by the supplier and the consuming company. It should be noted that households are not affected by this new pricing procedure. So no more cheap gas for everyone! Businesses, especially those making huge amounts of money, are savvy today. In four years, their gas consumption will be negotiated with the supplier. “ It is a regulatory element, it is welcome. This approach is to be welcomed to prevent an undue transfer of the pension», estimated, in a statement toTSAthe expert in energy issues Mustapha Mekideche. “This is a mechanism for capping the sale price of natural gas benefiting from public subsidies. Beyond these thresholds, additional quantities will be subject to an agreement with resident customers, whether national or foreign investors.“, he underlined, maintaining that it is a “first step towards rationalizing the consumption of this energy, and limiting the transfer of part of the gas rent ». « Regardless, it remains an interesting reform.“, he concluded. It should be remembered that the decree in question is in line with Law 19-13 of December 11, 2019, governing hydrocarbon activities, in particular its article 146, which opened the way for a review of the regulation of the energy sector. Such a measure has been expected for more than two decades. Committed to a profound reform of its energy sector, in order to avoid the sell-off of its wealth, Algeria has therefore decided to put an end to generalized subsidies on the price of natural gas for industrial players, whether national or international. . This change marks an important step in the management of hydrocarbons in Algeria and illustrates a desire to redefine the regulatory framework of the sector, so that it adapts as quickly as possible to the requirements of a rapidly changing market. From now on, the companies affected by this measure will have time to review their management with regard to gas consumption.
Mohamed M.
Belgium
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