ALGIERS, Algeria -- With global energy prices near record levels, Algeria -- a major supplier -- said it plans to switch away from long-term contracts to try to generate more revenue from its natural-gas reserves.
In an interview, Algeria's oil minister said he won't sign any further long-term gas contracts and will instead switch to shorter-term ones that allow the nation to renegotiate gas prices with customers every few years.
Chakib Khelil, who also is president of the Organization of Petroleum Exporting Countries, said the plan aims to drive up gas revenue for Algeria, the world's fourth-largest gas exporter. He also underscored the need for gas producers to cooperate to obtain a fairer price.
Algeria meets more than 11% of the European Union's natural-gas consumption and is a major producer of liquefied natural gas, or gas cooled into liquid form to be transportable by ship.
Algeria is developing the Medgaz pipeline to Spain, due to start up in the middle of next year, and the Galsi pipeline into Sardinia in Italy, due to begin exporting gas in 2012.
Gas is being sold far too cheaply under long-term contracts, Mr. Khelil said. Mr. Khelil said Algeria is talking with other producers about seeing what could be done to align gas prices more closely with oil prices, which are at historical highs.
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