(Ecofin Agency) - In Algeria, Sonatrach has revealed plans to invest $3.2 billion from 2016 to 2020 to boost pipeline capacity as natural gas production increases from new and current fields.

Algeria was hit by a 70% decrease in oil prices since 2014. The country’s earnings from energy dropped by half in 2015, making the government cut expenses and freeze some infrastructure projects.

In spite of the struggle to draw the attention of foreign oil companies in latest energy bidding rounds, the government is firm on boosting oil and gas output so as to maintain exports and feed rising local demand.

“Sonatrach will invest $3.2 billion from 2016 to 2020 to boost its transport capacity, including $530 million in 2016,” Arbi Bey Slimane, Sonatrach's vice president for pipeline transportation, told the Africa Report.

He added that the company is seeking to assure bigger supplies to European clients, stating that the extra transport capacity is aimed at delivering additional capacity as new fields in the southeast and southwest of the country plan to increase production soon. He however did not disclose further details on amounts or timing.

Algeria produces 1.1 million bopd and 27.44 bcm of gas.

“We will build 1,650 km of pipeline, and six compression and pumping stations by 2020. Our goal is to transport output from new fields located in the south east and south west,” Amin Mazouzi, Sonatrach's CEO said.

Anita Fatunji