(Montel) Algeria should increase its solar energy capacity to help maintain, or grow, gas exports to southern Europe, amid growing domestic demand for the fuel, said the CEO of Algeria-based consultancy Ranadrill Energy. In Algeria, we generate 98% of electricity from natural gas, so if we develop solar energy, we can replace the share of natural gas from electricity generation,” Choeib Boutamine told Montel in an interview. READ ALSO The history of oil in Arab civilizations Will oil prices rise again, following the drop resulted from OPEC policies and high demand? “We can use [the spare gas] for petrochemicals, or we can use it for exports,” he said, on the sidelines of the Gas Exporting Countries Forum summit in Algiers. His comments come as EU nations are keen to find alternatives to piped gas from Russia following the country’s invasion of Ukraine. Algeria aims to produce 27% of its power from renewables by 2035, with most of this likely to be met by new solar capacity. The country currently produces around 103bcm/year of gas, and accounts for 14% of EU supply. But there are concerns in Europe – particularly key consumers of Algerian gas, Italy and Spain – that growing domestic demand could impact export flows. However, Boutamine said the country was well positioned to pump more of the fuel to Europe, amid EU efforts to ditch Russian gas entirely by 2027. Steady supply“We have steady supplies. When you have steady supplies, you get trusted by your clients and that’s why North African countries will play a very crucial role for the European Union, as it is weaning itself off Russian gas,” Boutamine said. Also, he pointed out that Algeria did not have to contend with sea conduits such as the Bab al-Mandab Strait – where Iranian-backed Houthi rebels have been attacking shipping since late last year – or the Panama Canal, where drought conditions have resulted in vessel queues. “We don’t have these troubles here in North Africa – in Algeria, or Libya or even in Egypt – so I think this is the strong point of North Africa,” he said, noting “we have a very short distance, and we don’t have waterways”. As such, Algeria was taking steps to increase its gas output, he said. Gas investment“Algeria is investing USD 10bn from now to 2028, just to develop natural gas, because we know that natural gas has a crucial role in the energy transition.” He noted gas was vital in bridging the gap between fossil-fuel reliance and a renewables-based energy sector. “I believe we cannot make an energy transition in a very short time, so we have to be honest,” he said, noting 80% of global energy demand at present was still derived from fossil fuels. “If we compare gas, oil and coal, we find that natural gas is emitting less CO2 than the others,” he said, adding however 35% of global power generation was still from coal, with gas accounting for around 20%. “We have to make an energy transition among fossil fuels,” he said, adding “natural gas has to take the place of coal, and only after that can talk about an energy transition.”