Algeria To Step On The Gas: Max Revenue For Minimal Spend Amid Opec Constraints

Algeria is responding to Opec limits on oil production by seeking to maximize gas output at the expense of crude.

Abdelmoumene Ould Kaddour, CEO of Algeria’s state energy giant Sonatrach, says that maxing sales gas output by cutting gas injection to the country’s ageing oil fields could yield gains of 50mn m³/day (1.77bn cfd, 18.25bcm/year).

Such gains would potentially fill Algeria’s key Medgaz export pipeline to Spain twice over. In order to address the “twin challenge” of demand for gas at home and overseas, Sonatrach will give priority to “innovative projects for the recuperation of associated gas,” says the company chief.

BACK OF THE SOFA

This comes as delayed development and a cash crunch have left Sonatrach struggling for ways to bolster its hydrocarbons export revenues. “We’re in the process of looking everywhere for quantities of gas that may seem minimal compared to our gas sales, but these small quantities, added together, will give us very significant quantities for export, and therefore foreign currency earnings for the country,” said Mr Ould Kaddour last week.


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