Turkey, Algeria Agree to Extend LNG Contract for 4 Billion Cubic Meters Per Year

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Turkey and Algeria agreed to renew and extend their liquefied natural gas (LNG) contract for 10 years from 2014. Turkish Energy Minister Taner Yildiz said that with this agreement, Turkey will import 4 billion cubic meters of LNG annually from Algeria.

In a visit to Algeria, Yildiz held talks with Algerian Energy Minister Youcef Yousfi. In a press conference after talks, Yousfi said that if there was an increase in natural gas production from Algeria, they could rise the volume of natural gas to 6 billion cubic meters for Turkey.

"We have said we wish to increase our imports to 6 billion cubic meters a year," said Yildiz, semi-official Anatolian News Agency reported. "Everything will depend on Algeria's export capacity."

Turkey currently imports 4.4 billion cubic meters of LNG from Algeria annually. The import contract would have expired in 2014, but it was extended for another 10 years.

Algeria and Turkey signed a 20-year agreement in 1988 on the sale and purchase of 4 billion cubic meters of gas annually, and it came into effect in 1994. Currently, Turkey imports gas from Russia, Iran and Azerbaijan, and imports LNG from Algeria and Nigeria. Turkey is also buying LNG from spot markets, as well as countries like Qatar.

TPAO Investment Possibilities

"With [state-owned] Turkish Petroleum Corporation (TPAO), we're interested in oil exploration and production in Algeria," Yildiz said. "We want to take part in possible tenders for exploration and production rights. We're also open to work with Algeria's state-owned oil company, Sonatrach, in Algeria."

Currently, TPAO operates exploration and production businesses in Iraq, Kazakhstan, Libya and Azerbaijan. For more information about TPAO, see November 7, 2012 story - Turkey's TPAO Signs Drilling Deal in Southern Iraq.

"It's also possible to cooperate with Algeria in photovoltaic energy plants, which will open in Turkey in the near future," Yildiz said.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.