UPDATE 2-Germany seeks Algeria gas partnership: Merkel

(Recasts, adds background)

By Hamid Ould Ahmed

ALGIERS, July 16 (Reuters) - Germany wants to begin a reliable gas partnership with OPEC exporter Algeria to diversify energy supplies for Europe's largest economy, Chancellor Angela Merkel said on Wednesday.

Germany is heavily dependent on energy from Russia, which provides a quarter of Europe's gas needs.

"We want to diversify our energy sources. Algeria is a good gas supplier to Europe," Merkel said on a visit to the north African country, adding: "We are ready to make good proposals for Algeria and we ready to be a reliable partner."

Germany also wanted to help develop solar energy in Algeria, Africa's second largest country with a big swath of the Sahara desert, she said in a speech to Algerian business executives.

Germany relies on imports for 80 percent of its gas requirements, mainly from Russia and Norway, via subsea and land pipelines crossing eastern Europe.

Algerian newspapers have said supplies of liquefied natural gas (LNG) shipped by tanker from Algeria could help Germany reduce its dependence on piped gas from Russia, an aim of Merkel's government.

Liquefied natural gas is natural gas that has been cooled to liquid form in order to make overseas transport of the fuel practical. It is later warmed, or regasified, so the natural gas can be moved in pipelines.