Algeria Struggles To Maintain Gas Output Amid Project Delays

Algeria’s key upcoming gas expansion project is less than it seems. ‘Tinhert’ will see the tying in of small peripheral Illizi Basin fields. But this will likely do no more than make up for ongoing declines at the region’s mature fields. These include Total’s TFT, where production fell by 1/3 last year. Needless to say, Tinhert is massively delayed.

Despite last month’s start-up of Total-operated Timimoun, the second of three components in Algeria’s much-delayed 9bcm/y Southwest Gas Project (SWGP), decline elsewhere means Algeria has struggled to maintain its overall gas output.

Sales gas output hit 94.5bcm for 2017, only just behind 2016’s record 94.8bcm ( MEES, 2 March ). But gross wellhead output has actually been in decline since the start of the decade: falling from 146bcm (of which 42% reinjected) in 2010 to 128.5bcm (of which 26% reinjected) in 2016 (see chart).

Though gross figures are not yet available for 2017, steady sales gas output implies a further dip in the gross figure given that Sonatrach CEO Abdelmoumen Ould Kaddour last year explicitly said that Algeria was minimizing reinjection in order to maximize sales gas output whilst complying with the Opec/non-Opec deal to limit crude production ( MEES, 15 September 2017 ). (CONTINUED - 1814 WORDS)

DATA INSIDE THIS ARTICLE

chart Algeria Gross Gas Output (Bcm): Sales Gas At Record Levels As Reinjection Slashed; Is This Sustainable?
chart At In Amenas Completion Of A Compression Project At End-16 After The Mid-Year Restart Of The Terrorism-Damaged Third Train Saw Output Rise To Record Levels...
chart ...At In Salah, Also Operated By A Consortium Of BP, Statoil And Sonatrach, Output Remained Steady Last Year, After A 2016 Boost With The Tie-In Of Additional Fields...
chart ...But Output At The Total-Operated Tin Fouye Tabankort(Tft) Field Collapsed To Just 4.1bcm (400mn Cfd) For 2017