For new energy model in Mediterranean

April 10th, 2019

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APS : MONDAY 08 APRIL 2019

ALGIERS – The setting up of a new energy model in the Mediterranean region, founded on the security of supply, competitiveness and markets remain essential to meet the growing demand in energy,
underlined Monday in Algiers Minister of Energy Mohamed Arkab.

“The energy challenges, notably the increase in demand, the durability of energy production in the western region of the Mediterranean and international challenges require moving from a model based on import and export to a new regional energy model based on security of supply, competitiveness and opportunities,” Arkab said during his opening address at the Algiers forum on energies.

He noted that, in addition to these challenges, the Mediterranean region faces the challenge of guaranteeing economic development that meets the needs of a young population, in line with sustainable development goals, including job creation, poverty alleviation and sustainable access to energy.
On the issue of project financing, Arkab noted the World Bank’s participation in the forum and called for contribution to project financing.
“Access to finance is still an obstacle for many countries, especially in the South,” he regretted.

“There is still a need for finding mechanisms that enable the Mediterranean countries and the financial institutions to facilitate and promote the financing of these projects,” added the minister.
Arkab recalled that the hydrocarbons sector represents 2/3 of the Algerian state budget and 20% of the gross domestic product (GDP) of the country, highlighting the primary role played by the oil and gas sector in the national economy “to the extent that it provides almost all foreign exchange earnings”.