Algeria opposes the European Union’s decision to cap gas prices

Algeria, one of the world’s largest gas exporters, made clear on Tuesday that it opposes the European Union’s decision to cap natural gas prices at 180 euros per megawatt hour, and the minister of Energy Mohamed Arkab believed that “energy markets must remain free”.

Arkab said on the sidelines of the Algerian-German Energy Day that “Algeria does not support the idea of ​​limiting prices, whatever the circumstances”, adding that “the energy markets must remain free to continue the results and investment in the source”. as reported by the APS.

“We have agreements with our partners in Europe to provide them with energy, in particular natural gas. Algeria is a reliable and secure supplier for Europe, and we fully agree with our European partners regarding long-term pricing,” she added.

Arkab spoke in the presence of Deputy Minister at the German Ministry of Economy and Climate Protection, Franziska Brantner, noting that Berlin had initially opposed the European Union’s decision, fearing that the decision would push natural gas supplies downwards. more profitable markets in Asia.

But Germany finally voted in favor of the decision taken by EU energy ministers on Monday, after four months of discussion and response among member states on the issue.

Arkab explained that “open, transparent, unlimited and non-discriminatory gas markets are more than a necessity, in how much the development of investments depends on transparent and non-discriminatory legal frameworks supported by clear energy, financial and environmental policies in gas consumption and transit countries.”

He warned that the oil and gas industry “will be affected by the legislative changes introduced by the European Union”, referring to carbon neutrality, which among its commitments is to reduce the use of oil and gas by 60 and 70 percent respectively by 2050 compared to 2019 levels.

Gas prices have risen sharply since the Russian invasion of Ukraine began, catching up in summer about 340 euros per megawatt hour.