Production

Algeria to boost gas output from three fields next year

Wednesday, 21 September 2016 10:00

Algeria plans to increase its gas output to more than 9 billion cubic meters a year when its three delayed projects begin production next year.

These projects include the Touat gas field which is scheduled for February 2017 with an estimated output of 12.8 Mmcbm/d, Timimoun field in March 2017 with 4.6 Mmcbm/d, and also the Reggane gas field with 8 Mmcbm/d in June.

The three projects will come online on time, the outcome will reinforce our position as a reliable gas exporter to Europe. No delays, the projects will be delivered in 2017. Further in the south, we have found a huge potential of gas around the fields of Akabli and Tidikelt, in addition to Alrar's project in the east that will deliver gas and oil,” a Sonatrach source said.

The country which is the third largest gas supplier to the European Union, had in recent years fought to increase production of crude and natural gas due to the low foreign investment in boosting output at maturing fields and work new production.

A decline in gas demand from Europe weakened Algeria’s exports which were squeezed by the decelerating production at mature fields, low investment and its fast increasing domestic need for gas to generate power.

According to a Sonatrach document, gas output is projected to reach 141.3 billion cubic metres (bcm) in 2017, 143.9 bcm in 2018, 150 bcm in 2019 and 165 bcm in 2020.

The state-oil company by the end of 2017, will also recover significant volumes of gas that have been injected in Hassi Messaoud and its region in past years.

The country is expected to export 50 bcm to Europe this year, an increase of 15% in 2016 compared to 2015, Reuters reports.

Anita Fatunji

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
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