ENTSOG TYNDP 2017 - Main Report

Natural gas production shows uncertainty in the short-term and may recover in the mid-term. On the other hand, domestic gas consumption in Algeria has increased since 2004 and shows an ongoing upward trend that could influence export poten- tial.

90 bcma

90 %

60

60

30

30

0

0

2000

2002

2004

2006

2008

2010

2012

2014

Production

Demand

Export / Production

Figure 3.22: Algerian dry natural gas production and consumption (Source: EIA 2016, country report Algeria)

Exports

Pipelines Gas is exported to Europe through three main pipelines crossing the Mediterranean sea: \\ Pipeline Enrico Mattei (GEM): It came on line in 1983 and transports gas along 1,650km from Algeria to Italy via Tunisia. According to Sonatrach, its capacity is around 33bcma. \\ Maghreb–Europe Gas Pipeline (MEG): it came on line in 1996 and transports gas along 520km to Spain via Morocco. Its capacity is around 13bcma. \\ MEDGAZ pipeline: it came on line in 2011 and transports gas along 200km onshore and offshore, from Algeria to Spain. Its capacity is around 9bcma. LNG plants Currently, Algeria has four liquefaction plants, three in Arzew in the West and one in Skikda in the East of teh country. Combined LNG production capacity of all four plants is 44bcma of equivalent gas  1) (484TWh/y). In 2015 Algeria exported 20.7bcm (228GWh) to Europe via pipeline, 58% to Spain, 32% to Italy and 10% to other EU Countries via either Spain or Italy. With the commissioning of the MEDGAZ pipeline in 2011 Algerian exports to the Iberian Peninsula have increased while flows toward Italy have shown a decline in the past few years, which could be linked to the renegotiation of long-term contracts between ENI and Sonatrach   2) (see figure 3.24).

 1) Sonatrach: http://www.sonatrach.com/en/aval.html  2) http://www.argusmedia.com/pages/NewsBody.aspx?id=848890&print=yes

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Ten-Year Network Development Plan 2017 Main Report