US and algeria set to boost energy trade

US, Algeria set to boost energy trade

05-16-2007

During the 2007 energy forum, the United States and Algeria voiced interest in expanding areas of energy cooperation.

The US-Algeria Business Council convened the forum seeking broader trade partnership between the US and Algeria.

The meeting brought together top government and private sector officials.

Over 100 representatives of US companies met in this forum to discuss more investment opportunities in Algeria, with the presence of Algerian Minister of Energy and Mines Chakib Khelil and officials from the State Department, Energy Department, and the Department of Commerce.

Khelil said on the sidelines of the forum that this meeting is "a positive exchange of ideas" about energy consumption and how best to develop renewable energy, mainly solar.

He added that US-Algerian trade relations have been steady since the 1970s, and the recent bilateral trade boost simply reflects US needs for energy.

Khelil said in his speech to the forum that "Algeria will not miss the opportunity to take share of US market", noting that there is a good prospect for energy export to the United States and that Algeria "will be part of the solution" to US gas shortage.

On Monday, the Chief Executive Officer at Algeria-based Sonatrach said that the company will triple its exports of liquefied natural gas (LNG) to the US to 12 billion cubic meters within three years.

The CEO indicated that the company, which produces 62 billion cubic meters of gas annually, recently exports about four billion cubic meters of LNG to the US market, which has been witnessing increasing demand on the fuel in the past few years.

Algeria hopes to complete a large gas project known as Gassi Touil being developed by Spain's Repsol YPF and Gas Natural.

The country is also rebuilding two gas units at a complex at the port city of Skikda after being destroyed by a fire in 2004.

Algeria remains both the world's fourth largest gas exporter and the 18th supplier of oil.

Deputy Assistant Secretary of State for Near Eastern Affairs Gordon Gray said that Algeria is a strategic partner for the United States, and now it is ranked as the second trading partner in the Middle East after Saudi Arabia.

Gray said that the United States recently replaced France as the leading trade partner with Algeria, adding that there is no significant trade barrier for US companies investing in Algeria.

The trade partnership between the United States and Algeria reached USD 15 billion in 2006.

In his speech for the council, Gray affirmed the strong bilateral relations between the United States and Algeria, saying that the two countries have "shared interests" in combating "terrorism".

Gray said that the United States "has concerns about the security conditions in Algeria" but added that his administration would continue to cooperate with the Algeria government in that regard.

"We have great confidence that Algeria will defeat the terrorist threat", he added.

Addressing the US firms present in the forum, Gray assured that "the safety of US employees is on top of priority lists" of his administration.

Gray, describing Algeria as "a land of economic opportunities", praised the "ongoing liberalization of telecommunications", the modernization of the financial sector and the educational reforms, which includes the introduction of English language to schools curriculum.

Current US projects in Algeria includes increasing natural gas exports to the United States, upgrading the electricity grid, developing solar power stations, and creating new US-Algeria joint ventures exploration and drilling field.

Gray also backed up the Algerian effort to join the World Trade Organization (WTO).