Algeria Positions Itself as the Next Shale Gas Boom Town & Country

“Europe’s answer to the U.S. shale boom may lie beneath the Sahara desert.

While environmental regulation and disappointing drilling tests have held back the development of shale gas reserves in Europe, Algeria is using tax breaks to encourage exploration. Pipelines under the Mediterranean to Spain and Italy already link Africa’s largest gas exporter into Europe’s grid.

The North African nation is holding talks with Exxon Mobil Corp. (XOM) over shale, Ali Hached, an adviser to Energy and Mines Minister Youcef Yousfi, said in an interview. Eni SpA (ENI),Royal Dutch Shell Plc (RDSA) and Talisman Energy Inc. (TLM) have already signed shale exploration accords with Algeria, which expects tax breaks for gas exploitation and drilling shale to get parliamentary approval within weeks.”

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