Algeria nears the finalization of agreements with U.S. supermajors Exxon and Chevron to explore and invest in its shale gas resources as the North African country bets big on boosting its gas pipeline and LNG exports, the head of the Algerian energy regulator told Bloomberg.
“The technical aspects have more or less been agreed upon, but the commercial alignment is still under negotiation and will soon be finalized,” Samir Bekhti, chairman of energy regulator Alnaft, told the newswire in an interview published on Friday.
Algeria would send “a strong signal” for its resource potential by attracting the U.S. supermajors, the official said.
Tapping shale gas would be a first for Algeria, the North African OPEC producer which is looking to raise its production and exports as it looks to remain a key provider of gas to Europe.
Algeria holds huge conventional natural gas reserves, and it is also estimated to have the third–largest shale gas reserves in the world after China and Argentina.
Chevron commented on a potential deal with a statement to Bloomberg, saying that “we are excited by the prospective synergies and relationship we could create in Algeria,” considering the company’s experience and capabilities.
Most of Algeria’s gas exports are heading to Europe, which is increasingly betting on Africa to import large volumes of pipeline gas and LNG to replace pipeline gas supply from Russia, which was Europe’s top gas supplier before the Russian invasion of Ukraine.
Italy’s energy major, Eni, has been particularly active in securing more natural gas supply for Europe from Africa and has fast-tracked projects in Africa to meet Europe’s gas demand in the absence of Russian pipeline deliveries.
Moreover, the UK’s Grain LNG, Europe’s largest liquefied natural gas terminal, signed last year a ten-year agreement that will extend the long-term storage and redelivery capacity of Algerian energy firm Sonatrach at the Grain LNG terminal from January 2029.
By Tsvetana Paraskova for Oilprice.com
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