Germany is attempting to reach gas deals with Algeria to diversify supplies, amid fears of a potential energy crisis this winter.
Berlin’s top diplomat is visiting the North African country’s capital, Algiers, together with representatives of German companies looking for long-term contracts, as concerns grow in Germany that gas storage depots are only half full.
“We need to diversify… We need long-term gas contracts,” German Foreign Minister Johann Wadephul told an Algerian media outlet.
The U.S.–Israeli war dealt a further blow to German energy security after the initial shock caused by the Russia–Ukraine war. The EU’s top economy used to rely on cheap Russian gas, but large deliveries stopped after Russia launched its invasion of Ukraine four years ago. Berlin replaced Russian supplies with Norwegian piped gas and U.S. liquefied natural gas (LNG), but the latter comes with higher prices and greater volatility. Spain and Italy have already secured deals with Algeria.
Germany’s pursuit of long-term Algerian gas contracts highlights Berlin’s effort to reduce its exposure to geopolitical shocks after the loss of Russian supplies and renewed energy-market disruption from the Iran war. An agreement with Algiers could broaden Germany’s supplier base and potentially provide greater price stability than reliance on spot LNG markets, although it would not eliminate Europe’s exposure to wider energy disruptions. The key developments to watch are whether Wadephul’s visit produces concrete long-term contracts with Algeria and how quickly any additional supplies could reach Germany. Gas storage levels will also be a critical indicator as winter approaches, particularly whether Berlin can meet its mandated storage targets without significantly increasing purchases of more expensive LNG. (AFP)
