(Ecofin Agency) - As part of efforts to link new fields to the gas hub at Hassi R'Mel, Algeria has signed contracts for the construction of a new 9.4 Bcm/y pipeline that will increase the country’s internal gas transportation capacity by 18.3 Bcm/y by 2019.

Algeria is making efforts to increase gas production at new fields so as to balance the growing output at its Hassi R'Mel field, even though projects have been mostly delayed.On the other hand, Sonatrach is forging ahead with pipeline construction projects and has now signed contracts to construct the 344-km GR7 line from El Menia to Hassi R'Mel in central Algeria.

The agreements were entered into with local company Alfapipe and a consortium of Cosider and ENAC.

According to Sonatrach, the GR7 pipeline would take about 30 months to complete and would connect new fields at Hassi Mouina, Hassi Ba Hamou and Ahnet to Hassi R'Mel. The GR7 pipeline would also allow an additional 9.4 Bcm/y of gas to be transported.Another pipeline, the 765 km GR5 link which is currently being constructed to link the Reggane field with Hassi R'Mel, is expected to begin operation in H1 of 2017.The GR5 pipeline has the capacity to carry 8.9 Bcm/y of gas.These two new links when combined will add 18.3 Bcm/y to Algeria's gas transportation capacity.GR7 and GR5, are being constructed with sufficient spare capacity for future regional developments.

Latest data from the Oxford Institute of Energy Studies (OIES), has shown that the four fields expected to feed the new pipelines will have a peak production of a combined 10.1 Bcm/year.

This peak output levels are as follow; Hassi Mouina with 1.4 Bcm/y, Hassi Ba Hamou with 1.8 Bcm/y, Ahnet with 4 Bcm/y and Reggane with 2.9 Bcm/y.

The first three fields; Hassi Mouina, Hassi Ba Hamou and Ahnet are solely being developed by Sonatrach, while the fouth field, Reggane, is a development of Sonatrach in collaboration with Repsol, DEA and Edison, Platts news reports

Anita Fatunji