Page 9 - DMEA Week 40 2022

DMEA PIPELINES DMEA

The pipeline makes landfall at Almeria in southern Spain (Image: Medgaz)
Natural gas prices have more than doubled in He also noted that the price Naturgy will
Europe due to the Russia-Ukraine war, as Mos- pay is set by contract rather than by spot prices.
cow cuts back supplies in response to West- Naturgy paid about €38 per MWh for Algerian
ern economic sanctions. The many deals that piped gas between January and April, and the
Algeria has signed with Europe are expected to price is likely to increase by about €10 per MWh
deliver a cash windfall for the country. However, under the new deal.
the North African country’s ability to produce Algeria was Europe’s third-largest gas sup-
the agreed quantities in the short run remains plier in 2021 after Russia and Norway. It exports
in question. gas to Europe via pipelines to Spain and Italy
Algerian deliveries to Spain via Medgaz and has pledged to increase its energy supplies
have dropped in recent months on the back of to Italy by 20% this year to around 25bn cubic
escalating tensions between the two countries, metres. The North African country was Spain’s
especially after Spain shifted its foreign policy biggest gas supplier last year, accounting for 43%
and announced its support for Morocco’s auton- of its total gas needs, and was Italy’s second larg-
omy plan for Western Sahara. In June, Algiers est supplier.
suspended a co-operation treaty signed with Algeria’s new gas deals with Italy and Spain
Madrid in 2002 in response to the latter’s policy are expected to be profitable, as natural prices
shift. It also restricted commercial transactions in Europe are set to soar as winter approaches.
with Spain. However, gas shipments continued. The Medgaz pipeline originates at Alge-
Tewfik Hakkar, the head of Sonatrach, had ra’s Hassi R’Mel gas field and has a throughput
said earlier this week that his company had capacity of about 10.5bn cubic metres per year. It
struck deals on price revisions with six of its is 757 km long, and its underwater section runs
customers, including Italy’s Enel. from Beni Saf, Algeria, to Almeria, Spain. ™

Afreximbank has pledged $200mn loan for

EACOP, Ugandan president’s office says

AFRICA THE office of Ugandan President Yoweri Development Project (LADP).
Museveni announced on October 3 that the According to the president’s office, Afrex-
African Export-Import Bank (Afreximbank) imbank has already approved plans for the loan,
had agreed to provide $200mn worth of financ- and its CEO Benedict Oramah told Museveni
ing for the East Africa Crude Oil Pipeline during a recent meeting that the lender was pre-
(EACOP), a component of the Lake Albert pared to help back the pipeline project.

Week 40 06•October•2022 www. NEWSBASE .com P9