Algeria, Egypt and Libya could all play major roles in the supply of natural gas to Malta and the rest of the Mediterranean, according to industry leaders.

Energy giant Edison CEO Bruno Lescoeur was one of several experts who yesterday touted North Africa as a “huge prospective player” in the supply of natural gas to the EU.

He was speaking at the first Malta Energy Conference which saw big players in the international energy community gather to discuss methods of securing the supply of natural gas to the Mediterranean and southern EU.

Many of the speakers also called for increased pan-European efforts to maintain healthy business ties with Russia, which currently supplies the majority of natural gas used in the 28 member states.

The security of this supply, however, has repeatedly been brought into question, most recently in Ukraine where Russian State gas giant Gazprom suspended shipments following a breakdown in debt repayment talks last month. Despite assurances from the Russian Federation that exports to the EU would remain unaffected, the move had sparked concerns over gas supply across the rest of Europe.

Konrad Mizzi at the first Malta Energy Conference yesterday. Photo: Matthew Mirabelli

Energy Minister Konrad Mizzi yesterday said several Cabinet ministers would today meet to hammer out a plan for establishing better relations with gas supplying entities, including Russia.

Most the conference was spent giving a detailed review of the current supply situation in North Africa.

Algeria, the conference heard, has the largest domestic supply of natural gas in North Africa, however the majority of this is currently used to meet the country’s own demand.

Egypt is in a similar position, but experts yesterday expressed concerns over ongoing political instability in the country.

Libya, on the other hand, could have the best potential as a future supplier, with a large supply and relatively low domestic consumption, despite growing uncertainty over the country’s geopolitical stability.

The turbulent North African state has over 55 trillion cubic feet of natural gas reserves, and is currently exploring new gas fields, northwest of the Tripoli coast.

Georgetown University Professor Brenda Shaffer described gas as the best energy solution for the EU.

The Mediterranean, she said, was a unique region as it was one of the last to still be using oil to produce energy. Not only was this expensive but also by far the most harmful energy solution.

An expert in the politics of gas trade, Prof Shaffer, said the gas industry was more political than any other energy supply.

The long-term infrastructure and investment needed to set up pipelines and regasification terminals, she said, meant countries required continuous efforts to maintain good relations.

“Selling natural gas is a marriage between industry and government.”

Ready to cooperate

The EU is ready to cooperate with North Africa to secure a steady energy supply despite past political disputes, EU Commission Vice President Gunther Oettinger said yesterday

Mr Oettinger highlighted North Africa as a major prospective supplier of energy, particularly natural gas. The EC, he said, had plans for a Southern European gas energy hub, which would depend heavily on good business relations with North African suppliers.

Describing future cooperation with states like Algeria as “a win-win situation”, Mr Oettinger urged member states to “get on board” with North African energy supplies.

“The vast untapped supply of gas in North Africa presents huge opportunities and we are ready to work with these countries to build a way forward,” he said.