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Significance
Sonatrach is preparing to renegotiate most of its long-term contracts to supply natural gas by pipeline and as liquefied natural gas (LNG), as their expiry dates approach in 2019 and 2020. Ould Kaddour, who was appointed Sonatrach’s chief executive one year ago after a period of turbulence within Sonatrach, has made clear that he appreciates the need for a flexible approach in an intensely competitive market.
Impacts
Algeria’s hydrocarbons production is declining, but global demand for LNG in particular is rising fast.
Securing new natural gas supply contracts will be vital for Algeria’s revenue prospects.
Ould Kaddour’s efforts to foster better relations with international companies could be rewarded by increased investment.
Keywords:
Algeria,
ME/NAF,
Italy,
Morocco,
Europe,
Russia,
Spain,
economy,
industry,
international relations,
gas,
hard commodities,
oil,
foreign trade
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2018
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