Asset Swap Cartel

Russia and Algeria “armed themselves” with gas and peaceful nuclear energy

Europe's two largest gas suppliers - Russia and Algeria - continue to play the partnership card in front of the EU. Yesterday, the head of the Ministry of Industry and Energy, Viktor Khristenko, first inspected one of the Algerian LNG plants, and then signed a memorandum of cooperation with the Minister of Energy and Mining of this country, Shakib Khelil. Today, as part of the visit of the Russian delegation to Algeria, a meeting of the management committee of Gazprom and Sonatrach, operating within the framework of the memorandum of understanding between state-owned companies signed last spring, will take place. It will discuss specific proposals of the parties for the exchange of assets in the field of gas production. Gazprom offered the Algerian side eight objects in the production segment, of which the Algerian company selected four for itself, RIA Novosti reports the words of Mr. Khristenko, who did not name these projects. He called Gazprom's proposal quite interesting. Now, according to him, the Algerian side is forming its options for the exchange of assets. “Gazprom is interested in adequate participation in Algeria,” the minister concluded.

A day earlier, Mr. Khelil called the idea of ​​creating a cartel of gas exporters premature. “It’s too early to talk about a gas OPEC now, because the gas market is different from the oil market. Thanks to LNG, the gas market can become as dynamic as the oil market in 20-30 years, he is quoted by Reuters. Currently, he believes, there is no single gas market, but there are several segments, each of which is regulated by its own rules, depending on the availability of terminals and pipelines. However, if cooperation between Gazprom and Sonatrach reaches the exchange of shares in fields, talk of a “gas OPEC” will seem like a children’s fairy tale, at least for Europeans. After all, together Russia and Algeria provide approximately 40% of the EU's gas needs. And it is almost impossible to reduce this share, taking into account the planned growth of exports from these countries. The energy ties between the two suppliers in this case will be much stronger than between participants in a market collusion, where commercial and political interests often differ greatly.

Let us recall that earlier representatives of Russia and Iran - Vladimir Putin and Mahmoud Ahmadinejad - spoke about the exchange of gas assets at the highest political level. That is, there is an attempt by Moscow to tie the main current and main potential competitor in the European gas market to itself as tightly as possible (which may be stronger than joint ownership of assets). Because everyone understands perfectly well: sooner or later, a significant amount of Iranian reserves (26.9 trillion cubic meters) will turn into supplies to the European Union. It is quite possible that coordination of the positions of Moscow, Algeria and Tehran will manifest itself at the next forum of gas exporters, which will be held in April in Qatar.

Nuclear connections may soon be added to gas ties with Algeria. At the initiative of the Algerian side, the text of the memorandum signed yesterday included a clause on cooperation in the field of creating nuclear energy in the country. “The work of experts will begin in the near future,” Mr. Khristenko said. We are very glad that the memorandum contains a mention of cooperation in nuclear energy,” said Mr. Khelil in turn. Obviously, another Russian project to export peaceful atoms to the Arab world will not meet with much enthusiasm in Washington. However, Moscow clearly views this not as a deterrent, but rather, on the contrary, as an incentive to take active action.

Alexey GRIVACHS