Algeria has embarked on a substantial enhancement of its gas production capacities, signalling a major shift in the energy sector. The Minister of Energy has confirmed that several new gas fields have recently become operational, with more set to come online before the end of the year.
This significant upsurge in production is part of the state-owned energy company SONATRACH’s ambitious investment plan, committing $42 billion to increase oil and gas output.
In an in-depth interview with Al-Sharq, the Minister, Arkab, discussed Algeria’s strategy to expand gas exports to Europe, particularly during the winter months. He highlighted the nation’s response to the evolving global energy landscape. “Algeria is resolutely focused on enhancing its production capabilities,” Arkab stated, underscoring the country’s commitment to fulfilling Europe’s escalating demand for natural gas.
Arkab elaborated that Sonatrach’s investment from 2023 to 2027 includes substantial allocations: over $14 billion is earmarked for gas projects, $3.5 billion for petrochemical projects, and almost half a billion dollars for environmental initiatives. These initiatives encompass a range of projects such as gas recovery, solar energy development, and hydrogen project advancements.
In the previous year, Algeria’s gas production reached 102 billion cubic metres, with about 50 billion cubic metres exported and the remainder meeting domestic demands. The new investment aims to significantly bolster these figures. “By the end of 2023, we expect our production capacity to increase by approximately 4 billion cubic metres,” Arkab revealed.
Additionally, Arkab called upon European companies to intensify their investment in technologies for gas extraction and processing. He advocated for a collaborative approach with Algeria in sharing risks and costs, pointing out the mutual benefits of leveraging global expertise and knowledge in this sector.
On the international stage, Algeria is preparing to host the seventh summit of the Gas Exporting Countries Forum in February 2024. This event is set to focus on the sustainable development of the gas industry, enhancing infrastructure for gas transport and export, and promoting trade cooperation among member countries. Arkab views the summit as a critical platform to address key challenges and opportunities in the global gas market, aiming to enhance cooperation among the member states.
Regarding the response of OPEC and the OPEC+ alliance to the recent challenges in oil supply, Arkab emphasised the commitment of the member countries to their agreement. He noted that these nations are actively evaluating market conditions and addressing challenges, adopting necessary measures as needed to ensure market stability, thereby benefiting producers, consumers, and the global economy.
Source: Oil & Gas Middle East
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