French President Emmanuel Macron is flying to Algeria on Thursday (25 August) in a bid to easy out rocky relations with France’s former province. The go to can also be seen as a possibility to safe further fuel provides as costs attain new all-time highs.
Macron will go to Algeria to “strengthen Franco-Algerian cooperation within the face of regional points and proceed the work of appeasing recollections,” the presidential palace stated on Tuesday (23 August).
Although the Elysée was fast to level out that fuel is not going to be the precedence of this “friendship go to”, the relevance of the journey for France’s power coverage was highlighted by the presence of Engie CEO Catherine MacGregor on the presidential aircraft.
Algerian fuel imports surge 168%
Imports of Algerian fossil fuels surged 87% between 2021 and the primary trimester of 2022, in keeping with figures from the French Treasury. Pure fuel imports even noticed a rise of 168% over the interval.
France’s curiosity within the Algerian fuel market might be defined by the EU’s reducing reliance on Russia imports within the wake of the Ukraine struggle.
Fuel costs reached an all-time excessive on Tuesday (23 August), climbing to €290 per MegaWatt-hour (MWh) on the Dutch TTF Futures market, after peaking at €190 on the finish of February.
To handle mounting fuel costs, European leaders went on a fishing expedition to seal new partnership offers with African nations or search for new ones.
In Might, German Chancellor Olaf Scholz went to Senegal to barter a fuel deal that would substitute as much as 7% of Germany’s fuel imports from Russia.
Italian Prime Minister Draghi went to Algeria in July to barter a fuel deal for the provision of 4 billion cubic metres (bcm) earlier than winter which accounts for about 5% of the nation’s annual consumption for 2021.
Macron, like Draghi, may use the go to to start out fuel negotiations. Algeria certainly at present focuses on bilateral commerce relations, in keeping with Sébastian Boussois, a researcher on euro-Arabic relations on the Université Libre de Bruxelles (ULB) who spoke to EURACTIV France.
Difficulties in growing manufacturing
Nonetheless, Algeria, which at present provides about 10% of pure fuel to Europe, shouldn’t be ready to “improve manufacturing tenfold,” Boussois stated.
Ines Bouacida, a researcher on the Institute for Sustainable Improvement and Worldwide Relations (IDDRI), famous for the information weekly L’Obs that solely half of Algeria’s fuel export capability is getting used, which means the nation has “room for manoeuvre”. However “this suggests altering the working buildings, and this isn’t, in precept, on the agenda,” she added.
On prime of that, a slight rise in manufacturing was registered since Algeria signed an settlement to up capability with Western operators in July, the French Treasury reported.
However Algeria additionally must cope with an growing demand for fuel at house.
“It’s a query of who will get just a few million cubic metres of fuel extra,” stated Boussois, who additionally highlighted the significance of the newest power negotiations between Macron and the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud.
“It’s a query of who will get just a few million cubic metres of fuel extra,” stated Boussois, who additionally highlighted the significance of the newest power negotiations between Macron and the Crown Prince of Saudi Arabia, Mohammed ben Salmane.
“Algeria is a rustic that lives off an limitless lease, that doesn’t entice traders and that, like Saudi Arabia, makes no effort to modernise manufacturing infrastructures and anticipate wants. In contrast to Qatar, for instance, which has the very best liquefied pure fuel manufacturing know-how and the biggest tankers on this planet,” the researcher added.
Tense diplomatic relations
The French presidential go to is happening amid tense relations with Algeria.
Diplomatic relations hit a low in late 2021 after Macron reportedly questioned whether or not Algeria’s existence as a nation earlier than France invaded the nation in 1830, and accused these in energy of rewriting historical past and inciting “hatred in the direction of France”. In response, Algeria withdrew its ambassador from France, although ties have steadied since.
The French President who cancelled a visit set for early July – in all probability as a result of it was seen as being too near Algeria’s independence day on 5 July – will thus “need to make amends,” Boussois additionally stated.
Macron’s journey to Algeria may even be carefully watched by different EU nations. Germany, specifically, would welcome any further fuel provides from Algeria.
“If Macron can safe fuel for the French, that’s in any case [additional] fuel for Europeans,” says Thierry Bros, a Professor at Sciences Po Paris and contributor to Pure Fuel World.
[Edited by Frédéric Simon]
