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To set up such a cartel needs prior plans by both countries, he says, adding there has been no agreement between the two countries as to such a cartel. An idea both countries have denied, he stressed. Such a cartel is useless as the deals connected to gas sector are big transactions and long-term projects that need large investments which have no relation with such a cartel Benbitour explains. Europe is in a dire need for gas and, since Algeria is living a transitional phase as to the use of Energy starting from oil to gas then other kinds of energies such as the nuclear one. It is important so, says he, to have coordination between Algeria and Russia but there is no need to set up a cartel for that. In fact, Europe’s concern come from the fact that such a cartel may be negatively affect European gas consumption as the two countries are the main gas provider of the European Market. In addition, both countries are monopolizing European gas market as Russia covers 25% of the European gas demand and Algeria 10%. A gas coalition of the two countries could affect gas prices in European Market. A gas cartel could also be used as political pressure instrument as Russia did, last year, in her conflict with Ukraine. European countries gas supply was highly affected by the incident. This led Europe to diversify its gas supplying sources. | ||||||||||||||||||
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Algerian -Russian gas cartel is useless