Merkel seeks deeper energy ties in Algeria

Thu Jul 17, 2008 8:37am EDT
 
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By Hamid Ould Ahmed

ALGIERS, July 17 (Reuters) - German Chancellor Angela Merkel pushed for closer commercial ties in talks with Algerian President Abdelaziz Bouteflika on Thursday on a visit to the OPEC member country aimed at diversifying energy supplies.

Germany is heavily dependent on energy from Russia, which provides a quarter of Europe's gas needs, and Merkel said on the first day of her visit on Wednesday she wanted Germany to start a gas partnership with the north African gas exporter.

Asked by reporters whether she had discussed energy and gas with Bouteflika, she replied:

"Naturally we talked about future projects. I wanted to give Algerians an idea about German firms. As for economic issues, they were the main things we discussed."

"We agreed to set up a commission involving the two governments and businessmen from the two countries. This will have repercussions on economic relations between our two countries."

"We talked about bilateral relations which I consider friendly and excellent. We also noticed that the economic coooperation can be improved."

Present at the discussions were Algerian Energy and Mines Minister Chakib Khelil, who is the current president of OPEC, Deputy Defence Minister Abdelmalek Guenaizia, Foreign Minister Mourad Medelci and Telecommunications Minister Hamid Bessallah.

Algeria, which already supplies 20 percent of Europe's gas imports, is the sixth-largest foreign oil supplier to Germany but at present sells it no gas.



SOLAR ENERGY

Merkel also said on Wednesday that Germany wanted to help develop solar energy in Algeria, Africa's second-largest country with a big swath of the Sahara desert.

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.

Merkel said she also discussed rising world food prices and African and Middle Eastern topics, but gave few details.

"Naturally we talked about bilateral relations and the situation in Africa, particularly in Darfur, and the need to help the continent. We also talked about the high prices of food," she said.

"I think this visit laid an important stone in the construction of our bilateral relations."

Diplomats say Germany's economic presence in Algeria is growing rapidly, drawn in part by Algeria's $126 billion in foreign exchange reserves and a multibillion dollar programme of public works and reconstruction after years of political violence in the 1990s.

Germany is the fifth-largest exporter to Algeria after France, China, Italy and the United States, according to 2007 official data, and is in the top 15 buyers of Algerian goods. (Writing by William Maclean; editing by James Jukwey)



 

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