Algeria Squeezed In Europe’s Gas Market by a Flood of LNG - Bloomberg:
Algeria’s natural gas pipeline exports to Europe are getting squeezed by cheaper Russian supplies and a global abundance of the liquefied form of the fuel.
European clients of Sonatrach have “greatly reduced their demand” for conventional gas from Algeria, resulting in a 25% drop the level of sales expected this year, said Ahmed El-Hachemi Mazighi, vice-president of marketing at the state-owned energy company.
Algeria is the third-biggest gas supplier to Europe. Its lower pipeline exports are evidence of how new LNG supplies from the U.S. to Australia and Russia are overwhelming the market and driving prices lower. That’s reduced the competitiveness of the north African country’s pipeline gas contracts, which are mostly tied to oil prices, according to the energy consultant Wood Mackenzie.
Algeria’s natural gas pipeline exports to Europe are getting squeezed by cheaper Russian supplies and a global abundance of the liquefied form of the fuel.
European clients of Sonatrach have “greatly reduced their demand” for conventional gas from Algeria, resulting in a 25% drop the level of sales expected this year, said Ahmed El-Hachemi Mazighi, vice-president of marketing at the state-owned energy company.
Algeria is the third-biggest gas supplier to Europe. Its lower pipeline exports are evidence of how new LNG supplies from the U.S. to Australia and Russia are overwhelming the market and driving prices lower. That’s reduced the competitiveness of the north African country’s pipeline gas contracts, which are mostly tied to oil prices, according to the energy consultant Wood Mackenzie.
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