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Ten Year Network Development Plan 2015 

Table 5.7:

Algeria’s upcoming natural gas projects (Source EIA 2013, country report Algeria)

5.3.2.3 Algeria

Algeria is currently the third largest gas supplier of the EU and the fourth when

considering LNG. It is providing an average daily delivery of 853GWh/d represent-

ing 311TWh (28bcm) in 2013. It is expected to remain a key importer along the

time horizon of this report. Beyond the usual uncertainty related to production, Eu-

ropean market is competition with the Algerian internal and the global LNG markets.

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 the second larg-

est in Africa after Nigeria. More than half of the reserves (2,400bcm – 26,476TWh)

are located in the centre of the country within the historical Hassi R’Mel field. The

rest comes from fields in the South and Southeast of the country. Besides that,

Algeria holds vast untapped unconventional gas resources. According to official

figures, these resources amount up to 19,800 bcm (218 TWh) of shale gas and

additional 8,500 – 14,100bcm (93,446 – 155,743 TWh) of tight gas

2)

. Production

start of unconventional reserves is expected for 2020.

Production and Consumption

Since 2005 some of the Algerian largest gas fields have begun to deplete and hence

the production is slowly declining. Algeria aims to remedy at that situation bringing

new gas fields on stream. Unfortunately many of these projects are behind sched-

ule because of delayed governmental approval, difficulties in attracting investment

partners and technical problems. Algeria state-owned company Sonatrach plans to

invest 100 billion dollars by 2018 in the national oil and gas sector including 22

billion dollars for gas fields.

ALGERIA’S UPCOMING NATURAL GAS PROJECTS

Project name

Partners

Output (bcma)

Start year

Gassi Touli

Sonatrach

n.a.

2014 +

In Salah (expansion)

BP/Sonatrach

5.7

2015

Reggane Nord

Repsol/Sonatrach

2.9

2016

Timimoun

Total/Sonatrach

1.6

2016

Touat

GDF Suez/Sonatrach

4.5

2016

Ahnet

Total/Sonatrach

2.8 – 4.2

2016

Hassi Ba Hamou

BG Group/Sonatrach

2.0 – 2.8

2016 +

Isarene (Ain Tsila)

Petroceltic/Sonatrach

Tbd

2017 +

However, natural gas production is likely to continue to decline in the short-term but

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 potential.

1) Country report Algeria, EIA, May 2013

2) Platts July 23, 2014, issue 141