ENTSOG TYNDP 2017 - Main Report

3.3.1.3 Algeria

Algeria is one of the main producers in Africa and currently the third largest gas sup- plier to Europe by pipeline and also when considering both pipeline and LNG. In 2015 it provided to Europe around 23bcm (252TWh), 5% of the EU supply share. Algeria is expected to play an important role as gas exporter also in the future. However the availability of Algerian gas will depend on future production develop- ments and competition between pipeline gas and the global LNG market. Reserves With its 4,500bcm (49,557TWh) of proven natural gas reserves Algeria ranks in the top ten of countries with the largest gas reserves in the world  1) and is the second largest in Africa after Nigeria. More than half of the reserves (2,400 bcm – 26,476 TWh) are located in the centre of the country to the northwest, in the Hassi R’Mel field. The rest of the reserves come from fields situated in the Southern and South-eastern parts of the country. Besides that, Algeria holds vast untapped unconventional gas resources. According to an EIA study   2) Algeria has 20Tcm of technically recoverable shale gas resources, being the third-largest country world- wide after China and Argentina. Production and Consumption Since 2005 some of the Algerian largest gas fields have begun to deplete and hence the production is slowly but steadily declining. Algeria aims to invert this situation bringing new gas fields on stream but many of those projects have been repeatedly postponed because of delayed governmental approval, difficulties in attracting in- vestment partners and technical problems. Algeria state-owned company Sonatrach plans to invest 73 billion dollars between 2016 and 2020, two thirds of which will be allocated to exploration and production  3) .

ALGERIA’S UPCOMING NATURAL GAS PROJECTS

Project name

Partners

Output (bcma) Start year

In Salah (Expansion)

BP/Sonatrach

14.0

2016

Touat

Engie/Sonatrach

4.3

2016

Reggane Nord

Repsol/Sonatrach/DEA/Edison

4.3

2017

Timimoun

Total/Sonatrach/Cepsa

1.8

2017

Ahnet

Total/Sonatrach/Partex

3.9

2018

Hassi Ba Hamou

Sonatrach

1.4

2018

Hassi Mouina

Sonatrach

1.8

Tdb

Isarene (Ain Tsila)

Petroceltic/Sonatrach

3.6

2018

TINHERT, ILLIZI BASIN

Sonatrach

9.3

2018

MENZEL LEDJMET SE

Sonatrach

4.3

2019

Table 3.6: Algeria’s upcoming natural gas projects (Source: EIA 2016, country report Algeria)

 1) Country report Algeria, EIA, March 2016  2) Technically Recoverable Shale Oil and Shale Gas Resources, September 2015  3) http://www.aps.dz/en/economy/12788-sonatrach-will-invest-more-than-usd73-billion-by-2020

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