US - Algerian ministerial LNG summit

Welcoming remarks
(Dinner)

Dr. Chakib Khelil
Minister of Energy and Mines

Washington DC, November 6, 2002

Honorable Spencer Abraham, Secretary of Energy,

Honorable Janet Sanderson, US Ambassador to Algeria,

Your Excellency Idriss Jazairy, Algerian Ambassador to the US.

Ladies and Gentlemen,

I am especially pleased to be here with all of you this evening, on the occasion of the US-Algerian Ministerial LNG Summit. I believe that Algerian LNG presents both the US and Algeria - along with many of the companies represented at the Summit - with real opportunities.

To begin, I thank the Honorable Spencer Abraham, Secretary of Energy, as well as all those working for the Department of Energy, for dedicating so much of their valuable time to prepare this Summit.

I would also like to thank those in other US agencies, our Ambassador and his staff, and the US-Algerian Business Council for sponsoring this important event. In particular I would like to express my deep appreciation for the dinner's sponsors: BP, Marathon, Schlumberger, Tractebel and Weatherford.

I am fully aware of all the work required to make a conference of this nature a success and my sincere appreciation to all those involved in this project.

Finally, I would like to thank the participants who have kindly accepted our invitation. Your participation in the Summit is yet another demonstration of your interest in expanding your cooperation with Algeria and its industry.

Through the Summit, we will share experiences, perspectives and visions. I am confident that we will learn from one another.

Excellencies,

Ladies and Gentlemen,

This Summit strengthens the framework of cooperation between our two countries and the understandings reached in July 2001 between President Bush and President Bouteflika related to increasing Algerian LNG exports to the US. During the past couple of years, US - Algeria relation on both governmental and commercial levels have grown closer.

It is interesting to note that in the North African/Middle East region, Algeria is now the United States' third most active commercial trading partner. In terms of US investment, Algeria ranks second in the region. The foundation of this rather remarkable increase in trade and investment is, of course, oil and gas. We believe that the oil and gas sector offers even greater promise for both countries.

We seek to consolidate and expand our existing relationships and increase our exchanges on governmental, cultural and commercial levels. The July 2001 Agreement between our respective countries provided a blueprint for our intentions. We now should focus on how to make these intentions - a reality.

Excellencies,

Ladies and Gentlemen,

For the last forty years, Algeria has been at the forefront of the development of natural gas. In 1964, Algeria launched the first commercial LNG chain between Arzew and Canvey Island in the UK, a route that opened the giant Hassi R'Mel gas field to consumers outside Algeria. Through the rapid expansion of its LNG capacity and pipeline network to southern Europe, Algeria has been a reliable supplier of natural gas for decades.

Algeria's pioneering natural gas strategies have benefited both Algeria and its many customers. As we will hear during the course of the Summit, Algeria has, until recently, been the only LNG supplier to the US. The US LNG infrastructure, in large part, was built to receive Algerian LNG.

The natural gas market is undergoing transformation worldwide and Algeria is developing and implementing strategies to meet these challenges and to capture opportunities that will present themselves.

We believe that now is the time for additional Algerian LNG to flow into the US market. While the natural gas market is open, transparent and liquid, the US infrastructure - and specifically LNG receiving terminals - needs to be expanded. Such expansion is needed to allow additional quantities of LNG to flow into the US and satisfy the forecasted increase in natural gas demand.

This Summit will allow us to share issues and ideas of mutual concern. Through sharing of ideas, I believe we will help the process of finding and defining solutions to increasing Algerian LNG imports into the US.

Excellencies,

Ladies and Gentlemen,

The Summit has attracted a most impressive group of people and institutions. I look forward to tomorrow with anticipation. Together, we will find and define solutions to making the vision of our receptive Presidents - a reality.

Thank you for your attention and enjoy your evening.