Algeria rejects European cap on gas prices

ALGIERS, Algeria

Algeria on Tuesday rejected a European cap on gas prices, warning that the move will destabilizing the energy market.

"Algeria does not support the idea of capping prices. The energy market must be free to continue investments and projects,” Algerian Energy Minister Mohamed Arkab told a press conference with Franziska Brantner, Secretary of State at the German Federal Ministry of Economics and Climate Protection.

The Algerian minister warned that a gas price cap would affect the flow of investments and production.

“The development of investments depends on transparent and non-discriminatory legal frameworks supported by clear energy, financial and environmental policies in gas-consuming and transit countries,” he added.

“We, with our partners in Germany and Europe, fully agree on providing the continent with energy, especially with gas,” Arkab noted.

The minister also voiced Algerian concerns about “the use of the climate issue in discriminatory practices, and the implementation of measures related to barriers at the borders."

On Monday, EU energy ministers agreed on a gas price cap of €180 ($190) per megawatt/hour (MWh).

Russia, for its part, said it will respond to the EU move, stressing that it "will not recognize any ceilings."

*Ikram Imane Kouachi contributed to this report