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  • Writer's pictureFelix Tsourakis

Algeria Gas Industry Review

Algeria is the most successful gas producers in Africa, and one of the most influential countries in the oil & gas industry internationally, with numerous new projects on the horizon. This success is the result of several factors, with ALNAFT’s excellent leadership making excellent use of the resources available.

Algeria’s growing gas sector

Mr Abdelmoumen Ould Kaddour, CEO of Sonatrach will go over Algeria's successful gas development plans and meet companies at the Algeria Oil & Gas Summit

Algeria is Africa’s leading gas producer, with consistent and highly efficient production. The country has explored less than one-third of the available acreage, discovering more than 4,504 billion cubic meters of proven gas reserves. The unexplored two-thirds of the country are ripe with exploration potential and opportunities. In order to make the most out of the opportunities, Sonatrach is investing significantly, aiming to double its annual volumes of findings. Meet with Abdelmoumen Ould Kaddour, President of Sonatrach at the Algeria Oil & Gas Summit.

Gas production

Algeria is producing more than 94,778 million cubic m mn annually, with many high performing and state-of-the-art upstream facilities, exporting more than 25 bcm to its partners, including the EU, becoming its most reliable supplier.

The In Amenas Gas Project is the largest wet gas development project in Algeria, producing 9 bil cubic meter per year and 50,000 barrels of condensate per year. It is a beacon of international cooperation, being the product of the very successful joint venture between Sonatrach, BP and Statoil. In recent years, the joint venture invested in further developing the In Tiguentourine gas field, upgrading its facilities, and production to 8.8 billion cubic metres of gas per year.

At the same time, the Hassi Farida, Hassi Ouan Taredert and Hassi Ouan Abecheu fields are in various states of optimal production and updates.

Currently, Sonatrach is investing in expanding the In Amenas Gas Project, in order to improve the recovery of wet gas, and keep operating in peak efficiency of 30 million cubic meters per day.

Algeria produces more than 94,778 million cubic m mn annually, with new opportunities on the way, as they invest in exploration

Another major source of gas is the Tin Fouye Tabankort gas field. producing over 80,000 barrels per day for the last 6 years. In 2018, Sonatrach, Total, Repsol and ALNAFT signed a new concession contract to extend production in the gas field for 25 years. Total will possess a 26.4% interest, Repsol 22.6% with Sonatrach possessing the rest.

The Alrar Gas Field has seen significant upgrades and investments in recent years. Within 5 years production increased from 16 cm/d to 24.7 cm/d, rising more than 50% cm/d.

You can learn about this success by Sonatrach at the Algeria Oil & Gas Summit. Register here.

One cannot discuss Algeria’s immense gas potential without mentioning Hassi R’Mel. Hassi R’Mel is currently the largest gas field in Algeria and one of the largest gas fields in the world. Its reserves are estimated to be 2.4 TCM, with probable reserves of 3 TCM.

Sonatrach is employing cutting edge methods to keep a high reservoir pressure, with reinjection plans making significant progress.

Significant projects are underway at the Gassi Touil project, with 25 wells being connected to the Rhourde Nouss processing plan, creating a network of 7mcm per day, and 22 wells to the Gassi Touil plant, with a total production of 5.3 mcm per day.

Algeria’s leading role in shale gas

Algeria has abundant untapped unconventional hydrocarbons, with its shale gas reserve being one of the three largest in the world, with at least 741 Tcf of total technical recoverable resources.

In 2014, Sonatrach drilled its first shale gas pilot project in the Ahnet Basin. The well confirmed the existence of substantial reserves of shale gas in the Basin with Sonatrach estimating total reserves of 200,000 Bcm of gas in the basin, with more than 20,000 Bcm of recoverable gas accessible at the moment.

Sonatrach aims to produce 20 Bcm by 2030, reaching 70 Bcm by 2040. Large investments from one of the largest oil and gas companies in the world make the opportunities for operators more numerous than ever.

Algeria’s robust gas exports to Europe

Algeria is Europe's most dependable gas provider, supplying the continent with more than 25 bcm annually

Algeria is Europe’s third largest gas exporter, responsible for covering 14% of Europe’s energy needs, supplying more than 25 bcm annually. Its geographic position as an energy hub, and well-earned reputation status as a reliable and efficient partner make it the most attractive supplier for Europe, with many new deals in recent years. Algeria has honoured all its gas contracts with no interruptions in its pipeline activities.

Spain is the country’s most prominent importer, with Algeria covering more than half of its energy demand through two underwater pipelines. Last year, Sonatrach extended its gas deal with Fenosa, Spain’s Natural Gas company, by 12 years, in a $35 billion agreement. Sonatrach will supply 40% of Naturgy’s needs until 2030.

Italy is the second major importer of energy, receiving a constant flow of gas through the Trans-Mediterranean Pipeline, originating at the Hassi R’Mel field.

The rest of Europe receive LNG through a fleet of tankers and the extended network via Spain and Italy.

Algeria is the sixth-largest gas exporter in the world, upgrading its pipelines and exporting facilities constantly, investing millions annually to new partners. Meet Sonatrach and expand your business in Algeria on 17-19 June 2019 at the Algeria Oil & Gas Summit.

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