Germany Seeks Algerian Gas Deals Amid Storage Worries

Germany's foreign minister, Johann Wadephul, has announced that the country is seeking long-term gas supply agreements with Algeria as part of its diversification strategy.

The move comes amid concerns about Germany's gas storage levels, which are currently only half full. This is a key concern ahead of autumn, when demand for gas typically increases.

Germany previously relied heavily on cheap Russian gas, but deliveries largely stopped after Russia's invasion of Ukraine in 2022. Since then, the country has shifted to Norwegian piped gas and American liquefied natural gas (LNG), although LNG prices tend to be higher and more volatile than long-term piped gas contracts.

Algeria already has agreements with Spain and Italy, and Wadephul expressed hope that Germany could secure part of its gas supply from the North African country. He noted that this was a 'core interest' for Germany.