Southern Europe Rethinks Algerian Supply

摘要

Customers in southern Europe have started to renegotiate long-term contracts with Algeria, Europe's third-largest gas supplier，to try to take advantage of the buyer's market. More contract expiries and reopener clauses starting in 2019 will show whether the North African exporter can offer sufficiently attractive terms to hang on to these buyers in the face of growing competition (WGI Mar.8'17). Algeria already seems to be struggling in some markets. Exports to Europe were estimated at around 54 billion cubic meters (5.2 billion cubic feet per day) last year, in line with 2016, but down on the forecast 57 Bcm. Piped gas took the biggest hit: Spain's piped imports dropped 8% year-on-year to around 15.3 Bcm, although flows to Italy were steady at roughly 17 Bcm.