Sonatrach declares not to be affected by EU energy plans

Algeria reiterated on Saturday it is not concerned by European Union's proposals to end the monopoly on its gas and electricity market, saying it aims to remain a major supplier to Europe.

The comments by Mohamed Meziane, Chief Executive Officer of state-owned energy firm Sonatrach, came a week after Energy and Mines Minister Chakib Khelil said the EU's plans would not affect his country's state-owned oil and gas firm.

"Until now, we see nothing indicating that the plans would affect Sonatrach. We need to wait and see the regulation which will be adopted," Meziane told state radio. "Sonatrach wants to be present in supplying the European gas market, which is our natural market," he added.

The European Union executive this month adopted proposals aimed at forcing big utilities such as Germany's E.ON and Electricite de France to separate power generation from their distribution networks.

The new rules will also bar foreign firms from controlling European energy networks unless they play by EU rules and their home country reaches an agreement with Brussels, Commission President Jose Manuel Barroso has said. Algeria is a major supplier of gas to Europe, particularly Spain, Italy and France. Its current output is estimated at 62 billion cubic metres per year, and is expected to reach 85 billion per year by 2015.

Reuters