Germany is seeking to secure long-term contracts for Algerian gas as Berlin looks to diversify its energy supplies, German Foreign Minister Johann Wadephul said Thursday during a visit to Algeria accompanied by a delegation of business leaders.
“We have to diversify our sources… We need long-term gas contracts,” Wadephul told German broadcaster ZDF, as Germany’s gas storage facilities stand at only around half capacity ahead of the autumn season.
Wadephul said he would meet Algerian Energy Minister Mourad Ajjal, adding that representatives of German companies seeking to secure long-term gas contracts were accompanying him on his visit.
Referring to Algeria’s gas agreements with Spain and Italy, Wadephul said he hoped Germany could also secure part of its gas supplies from Algeria. “This is a fundamental interest for us,” he said.
Germany, the European Union’s largest economy, previously relied heavily on cheap Russian gas, but major supplies were cut off following Russia’s invasion of Ukraine in 2022, dealing a major blow to German industry.
Since then, Berlin has largely replaced Russian energy supplies with Norwegian pipeline gas and U.S. liquefied natural gas (LNG). However, LNG prices are generally higher and more volatile than pipeline gas supplied under long-term contracts.
The U.S.-Israeli war with Iran has added further pressure to gas prices, raising concerns about a potential energy supply crisis during the coming winter.
Germany’s gas storage facilities are currently only 53% full, compared with an average of 65% across the European Union, according to data from the Aggregated Gas Storage Inventory platform.
“With no indications that either of the two crises will end quickly, it is clear that we need to diversify our sources,” Wadephul said, adding: “We need more suppliers.”
In the aftermath of the 2022 gas crisis, the German government introduced mandatory minimum gas storage levels in an effort to limit sharp volatility in spot prices, with the state stepping in to purchase gas when necessary.
The government required most gas storage facilities to reach at least 80% capacity by November 1.
The push for Algerian gas comes as Germany continues to seek greater diversification of its energy suppliers and reduce its exposure to disruptions in individual supply routes, particularly amid heightened geopolitical tensions.
