Algerian Gas Talks Snaf on Price Issue
The Algerian Government, having reached an agreement to sell natural gas to France at prices well above market levels, has been pressing the United States and Italy to sign similar long-term contracts. But after prolonged negotiations, it seems unlikely that the parties will be able to come to terms. The three American companies involved in the talks - Southern Natural Gas, Consolidated Natural Gas and Columbia Gas Transmission - have strongly resisted Algerian demands that the price of natural gas, in terms of its energy content, be equivalent to the price of Algeria's high-quality crude oil. And the Italian Government, which helped build a $3 billion gas pipeline that runs 1,200 miles from Algerian gas fields, through Tunisia and under the Mediterranean to Sicily, is reported to be so irritated at the price demands that it is prepared to let the line remain idle.