ALGIERS, Feb 28 (Reuters) - Gas consumers should change their energy policies if they want to help develop the gas industry, Algerian Energy and Mines Minister Chakib Khelil said on Saturday.
Khelil, whose country supplies about 20 percent of Europe's gas imports, told a forum on gas in Algiers tax systems constitute the main hurdle to exporters wishing to invest in gas importer nations.
'If it is recognized that the gas is cleaner energy than coal, it must be given a tax advantage,' he said.
'Barriers faced by companies from gas exporter countries, such as (Algerian) Sonatrach, to invest in European markets ... constitute in our view, hurdles to expand gas industry,' he added. 'Such policies...can be explained only by concern to protect narrow interests,' Khelil said.
State-owned energy group Sonatrach said earlier this month it would increase the capacity of two existing pipelines linking it to Italy and Spain by 7.7 billion cubic metres in 2009.
The rise will be in addition to a planned increase of 8 billion cubic metres through the new Medgaz pipeline which is expected to be completed by the end of this year.
Sonatrach has a 36 percent stake in the undersea Medgaz pipeline linking Algeria to Spain.
Spanish energy company Cepsa has 20 percent, Spanish utilities Iberdrola and Endesa 20 percent and 12 percent and Gaz de France 12 percent stake in the pipeline.
Algeria currently exports 62 billion cubic metres of gas per year, mostly to Europe.
(Reporting by Hamid Ould Ahmed; Editing by Editing by Dominic Evans) Keywords: ALGERIA EUROPE/GAS (maghreb.newsroom@thomsonreuters.com; tel + 213 21 727020) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Khelil, whose country supplies about 20 percent of Europe's gas imports, told a forum on gas in Algiers tax systems constitute the main hurdle to exporters wishing to invest in gas importer nations.
'If it is recognized that the gas is cleaner energy than coal, it must be given a tax advantage,' he said.
'Barriers faced by companies from gas exporter countries, such as (Algerian) Sonatrach, to invest in European markets ... constitute in our view, hurdles to expand gas industry,' he added. 'Such policies...can be explained only by concern to protect narrow interests,' Khelil said.
State-owned energy group Sonatrach said earlier this month it would increase the capacity of two existing pipelines linking it to Italy and Spain by 7.7 billion cubic metres in 2009.
The rise will be in addition to a planned increase of 8 billion cubic metres through the new Medgaz pipeline which is expected to be completed by the end of this year.
Sonatrach has a 36 percent stake in the undersea Medgaz pipeline linking Algeria to Spain.
Spanish energy company Cepsa has 20 percent, Spanish utilities Iberdrola and Endesa 20 percent and 12 percent and Gaz de France 12 percent stake in the pipeline.
Algeria currently exports 62 billion cubic metres of gas per year, mostly to Europe.
(Reporting by Hamid Ould Ahmed; Editing by Editing by Dominic Evans) Keywords: ALGERIA EUROPE/GAS (maghreb.newsroom@thomsonreuters.com; tel + 213 21 727020) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.