Slovenia turns back to Algerian gas after flirtation with Russian supplies

Slovenian Prime Minister Robert Golob is set to embark on a diplomatic mission to Algeria on May 27, including discussions on extending the Slovenia-Algeria gas supply contract, a crucial aspect of bilateral cooperation, the Slovenian government announced. 

Historically, Slovenia relied on Algerian gas, sourced via Italy, to meet up to 30% of its gas market needs. However, after the expiration of the contract between Geoplin and Sonatrach in 2012, the government at the time, under Janez Jansa, opted to solely depend on Russian gas, neglecting the potential benefits of Algerian gas. Subsequently, in 2014, after Russia's attack on Ukraine and the ensuing energy crisis, the importance of Algerian gas as a viable substitute in times of disruption to Russian gas supplies became apparent.

This is the first bilateral visit following the enactment of the economic cooperation agreement, effective since March 20, 2024. The accord aims to foster consistent dialogue aimed at enhancing trade and investment across specific sectors, while also working towards eliminating trade barriers.

During the visit, Golob will hold talks with his Algerian counterpart, Nadir Larbaoui, and meet with President Abdelmadjid Tebboune.

One of the highlights of Golob's visit will be the official opening of the Slovenian embassy in Algiers, which marks a significant step towards enhancing political, cultural and economic relations between Slovenia and Algeria.

Algeria, in turn, plans to reciprocate by appointing its first resident ambassador to Slovenia and establishing an embassy in Ljubljana, further strengthening bilateral ties.

The signing of the contract between the Slovenian company Geoplin and the Algerian company Sonatrach will further solidify energy collaboration between the two countries, contributing to energy security and economic development.

The government said that Slovenia is committed to fostering ongoing collaboration with Algeria in the energy sector, which facilitates the diversification of energy sources and enhances energy security, ensuring the global competitiveness of Slovenian companies. The recent signing of the contract with Geoplin marks a significant stride towards bolstering long-term energy cooperation and exploring new avenues with sustainable resources.

The extension of the agreement between Geoplin and the Algerian national oil company Sonatrach for gas supply, spanning a three-year period from 2023 to 2025, with a capacity lease of 0.3 bcm/year, will continue to be in effect from 2026 onwards, upon the expiration of the current contracts.

On November 15, 2022, Bojan Kumer, the Minister of the Environment, Climate, and Energy, was present at the signing ceremony of a gas supply agreement between Geoplin and the Algerian national oil company Sonatrach. This three-year contract, with a capacity lease of 0.3 bcm/year, provided Slovenia with one-third of its annual gas consumption, approximately 1 bcm/year, with provisions for potential extensions and increases in supply.

The gas supply contract between the two companies came into effect on January 1, 2023, facilitating gas transportation from Algeria, through Tunisia, via the Trans-Mediterranean Pipeline, and onward to Slovenia through Italy.

Through the signing of this agreement, the Ministry of the Environment, Climate, and Energy, ensured continuous, reliable access to gas at affordable prices for the people of Slovenia during the first stage of the gas crisis. 

The Golob's visit will also encompass talks on political and economic cooperation, with a particular emphasis on strengthening ties in the fields of energy, academia, and technology.

Furthermore, the discussions will address important global issues, including migration management on Algeria's southern border and cooperation in managing unauthorized migration to Slovenia.