Algiers - German Foreign Minister Frank-Walter Steinmeier continued his North African tour Thursday with talks in Algeria that focused mainly on energy issues and economic cooperation.
Steinmeir met with Prime Minister Abdelaziz Belkhadem and Energy Minister Chekib Khalil as well as with President Abdelaziz Bouteflika, with whom the German envoy held four hours of talks.
Both countries are to increase bilateral cooperation in the energy sector and particularly in the field of natural gas production and supply, it was agreed, with German utility Eon signing a declaration of intent with Algerian state energy company Sonatrach on long-term provision of liquid natural gas (LNG)
"We value Algeria as a reliable energy provider," said Steinmeier, who said the agreement would dynamically contribute to German- Algerian economic ties. An Eon company spokesman spoke of the "first important steps" between the Germany energy giant and Sonatrach, which currently supplies 26 billion cubic metres of gas annually with a target of 85 billion cubic metres per year by 2020.
Germany currently sources its entire supply of natural gas via pipeline connections and is seeking to secure more supplies of LNG. German firms are meanwhile hoping to secure contracts under planned Algerian infrastructure projects estimated to be worth around 80 billion dollars until 2009.
Thursday's agreement follows a deal the previous day under which Algeria agreed to repay its debt to Germany in full, five years earlier than expected and largely thanks to high revenue intake from its abundant natural resources.
Algeria is a major energy supplier to Europe and is also the world's 11th largest oil producer and fourth largest natural gas producer. The revenue from those energy sales - estimated at more than 50 billion dollars for 2006 - has allowed Algeria to settle its debt with a number of creditors. Germany is the country's fourth- largest creditor.
Steimeier had earlier Wednesday met with Libyan leader Moamer Gaddafi in Tripoli as part of a five-day North Africa tour, which will also take him through Tunisia, Morocco and Mauritania.