Germany Seeks Algeria and Tunisia Gas Amid Diversification Drive
Germany is seeking to diversify its gas supplies by securing new sources from Algeria and Tunisia. German Foreign Minister Johann Wadephul visited Algiers on Tuesday, where he met with his Algerian counterpart for Hydrocarbons, Mohamed Arkab. Wadephul described Algeria as a 'reliable partner' for Germany, highlighting the need to diversify energy supplies in the wake of Russia's invasion of Ukraine in 2022.
The German government has largely cut ties with Russian energy deliveries, and completely for gas, according to Minister Wadephul. The minister also referenced the Strait of Hormuz crisis as a factor behind rising gas prices. Neither crisis is likely to be resolved 'quickly', he said.
Germany's storage levels are currently at 53%, well below the European average of 65%. The country's gas reservoirs are filled to this level, with private operators trading stored volumes. To address concerns over winter demand coverage and gas prices, the German government introduced mandatory filling targets for underground storage operators in 2022.
The minister received 'very positive' responses from Algeria and Tunisia, which he visited the day before. A contract between Algerian group Sonatrach and German energy company VNG is set to take effect in 2027, providing for an extension of natural gas deliveries to the German market starting January 1.