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Markets & Forecasts

Algerian pipeline gas losing competitiveness

Exports of oil-indexed pipeline gas and LNG from Algeria are facing a difficult trading environment as rising crude prices deter buyers Exports of oil-indexed pipeline gas and LNG from Algeria are facing a difficult trading environment as rising crude prices deter buyers.
By Abhishek Kumar 9 April 2019 Middle East & Africa / LNG 0 34114
A pipeline in Algeria. (Saipem)

Directional impact on forecast:
Downbeat for Algeria’s pipeline gas exports

Oil indexation in term contracts is denting market appetite for Algeria’s pipeline gas. And while when it comes to LNG the country can trade more of its volumes on the spot market, there is no such flexibility for the pipeline gas it sends to Italy and Spain. Gas and LNG exports are a vital source of revenue generation for Algeria, but high oil prices are exerting pressure on the government to change tack...