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Germany seeks long-term Algerian gas deals as storage levels lag
🇸🇦 Saudi Arabia /Energy & Infrastructure

Germany seeks long-term Algerian gas deals as storage levels lag

From Asharq Al-Awsat · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Germany is seeking long-term gas contracts with Algeria to diversify supplies as its gas storage facilities remain 53% full, below the EU average of 65%.
  • Foreign Minister Johann Wadephul said German companies were joining his delegation to Algiers and that securing Algerian gas was a core German interest.
  • Berlin must fill most storage facilities to at least 80% by November 1 under rules adopted after the 2022 gas crisis.

Germany is looking to Algeria for long-term gas contracts as autumn approaches and its storage facilities remain only 53% full, well below the European Union average of 65%.

Foreign Minister Johann Wadephul raised the issue in Algiers, where he joined a German business delegation. He said he would meet Energy Minister Mourad Adjal and that representatives of German companies seeking long-term contracts were travelling with him.

We need to diversify... We need long-term gas contracts.

— Johann WadephulGermany's foreign minister described Berlin's goals during a visit to Algiers.

"We need to diversify... We need long-term gas contracts," Wadephul told German public broadcaster ZDF. Referring to Algerian agreements with Spain and Italy, he added: "I also hope that Germany will now be able to secure part of its gas supply here. That is our core interest."

I also hope that Germany will now be able to secure part of its gas supply here. That is our core interest.

— Johann WadephulWadephul said Germany wanted to obtain part of its gas supply from Algeria.

Germany once depended heavily on inexpensive Russian gas, but large deliveries stopped after Russia launched its invasion of Ukraine in 2022. Berlin has since relied mainly on Norwegian pipeline gas and US liquefied natural gas. LNG generally costs more and fluctuates more than gas supplied through long-term pipeline agreements.

The situation has become more difficult as the US-Israeli war on Iran has put additional pressure on gas prices, prompting fears of an energy shortage this winter. Wadephul said there was no quick end in sight to either crisis and that Germany needed more suppliers. Most German storage facilities must reach 80% capacity by November 1, with the government prepared to buy gas if necessary.

Since there is no prospect of a quick end to both crises it's clear that we need to diversify. We need more suppliers.

— Johann WadephulHe linked the search for suppliers to pressure from the continuing energy and geopolitical crises.
About this summary

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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