SONATRACH PREPARES FOR GREATER EXPORTS OF NATURAL GAS

Dec. 6, 1993
Mohammed Taleb Sonatrach Algiers Algeria is increasing its capacity to export natural gas in order to reinforce its strong position in the growing international market. The country's reserves are estimated at more than 3.6 trillion cu m. Algerian energy and development policy is based on a rational exploitation of this resource.
Mohammed Taleb
Sonatrach
Algiers

Algeria is increasing its capacity to export natural gas in order to reinforce its strong position in the growing international market.

The country's reserves are estimated at more than 3.6 trillion cu m. Algerian energy and development policy is based on a rational exploitation of this resource.

A liquefied natural gas (LNG) pioneer, Algeria has one of the world's most important LNG production capacities. With a location encouraging, export to nearby countries, Algeria has an important place in the world natural gas market and an exclusive role within its trading region.

This requires development of transport capacity. Accordingly, Algeria has built the Transmediterranean Pipeline (Transmed) linking Algeria to Italy and this year launched construction of the 530 km Maghreb/Europe (GME) pipeline to Spain.

In 1992, natural gas represented 63.9% of total primary hydrocarbon production of 162.4 million metric tons of oil equivalent (TOE). Production net of reinjection operations reached 107.4 million TOE, of which natural gas represented 45.9% (see figure).

Algeria marketed 49.4 million TOE of natural gas, of which '04.4 million TOE was exported in gaseous and liquefied forms.

The export total accounted for 10.5% of the 1992 world market. Algeria held 24.2% of the international LNG market and 6.2% of the pipeline export market.

Natural gas represented 40.1% of Algeria's hydrocarbon exports in 1992, LNG alone 22.6%. If all by products of LNG are assumed to be exported, natural gas in its two states represents 41.1% of total hydrocarbon exports (35.3 million TOE), LNG and its byproducts alone 23.7%.

A GROWING ROLE

Algeria plans to increase its international trade in natural gas in coming years. The effort will especially focus on southern Europe.

Sonatrach aims at increasing natural gas exports from 35.4 billion cu m in 1992 to 60 billion cu m.

To meet this objective, the national company has started refurbishing its LNG facilities. From 1997 on, LNG plants in Arzew and Skikda will be able to produce as much as 30 billion cu m/N,ear.

At present, Sonatrach's four LNG plants operate at less than capacity rates because they need steam. At Arzew liquefaction capacities are 10.5 billion cu m/year each in the GL 2Z and GL 2Z plants and about 2 billion cu m/year in the GL 4Z plant. The GL 1K plant at Skikda has liquefaction capacity of 8 billion cu m/year.

All the LNG plants produce byproducts such as LPG, ethane, helium, nitrogen, and gasoline. They produce their own electricity and steam, consuming about 13% of inlet gas streams in the process.

Sonatrach accounts for these gas use volumes, as well as for gas consumed in transportation of gas from producing areas to LNG plants and other facilities, as "autoconsumption," totaling 208.3 trillion BTU in 1992.

At Arzew, Sonatrach operates two LPG separation plants: GP 1Z with a capacity of 4 million tons/year of LPG and GP 2Z with capacity of 600,000 tons/year of LPG.

The GME pipeline now under construction will be able to carry 7.2 billion cu m/year at completion of its first phase in 1996. This capacity will be increased to 18.5 billion cu m/year in its final phase.

In addition, Sonatrach has decided to increase capacity of the Transmed pipeline to 24 billion cu m/year.

LOCAL MARKETS

The local market consumes 15 million TOE/year of natural gas-65.8% of primary energy consumption. This is expected to increase in coming years to 19 million TOE/year as the industrial sector, which accounts for 15% of Algerian demand but now is in recession, recovers.

The national distribution network has sufficient capacity to handle the increase.

Sonatrach's major Algerian oil and gas customers, all state concerns, and their activities include Sonelgaz, electricity and gas; Naftec, refining; Asmidal, fertilizer; and Enip, petrochemicals.

Naftec returns some of its products to Sonatrach for exports and markets the rest through a distributing company, Naftal.

Copyright 1993 Oil & Gas Journal. All Rights Reserved.