Liquefied Natural Gas (LNG) Exports:
With the start-up of the Arzew GL4Z plant in 1964, Algeria became the world's first LNG producer. In recent years, Algeria's competitive position in the LNG business has suffered due to rivalry from Asia and cheaper alternative energy prices.
In fact, Algeria's LNG complexes have been producing below their design capacities due to the growing disadvantage of their higher-cost operations. Algeria was the second largest exporter of LNG in 1998, with 22 percent of the world's total LNG, exported mainly to Western Europe and the United States.
However, Sonatrach has almost completed a total renovation of its LNG facilities which is expected to raise the country's LNG production capacity to 3.19 Bcf/d in 2000.
This refurbishment program focused on the 1-Bcf/d Arzew GL1Z, 1-Bcf/d Arzew GL2Z, and 770-MMmcf/d Skikda GL1K plants. Also, Algeria's original 260-MMmcf/d Arzew GL4Z, or "Camel," plant, which was slated for decommissioning by 1997, has been refurbished to keep the plant operational for reserve purposes until at least 2003. Prior to refurbishment, operational capacity of the Camel plant was 163 MMmcf/d, or 62 percent.
In 1998, Algeria sold 0.93 Bcf/d of its LNG to France, 0.41 Bcf/d to Belgium, 0.36 Bcf/d to Spain, 0.19 Bcf/d to Italy, 0.19 Bcf/d to the United States, and 0.28 Bcf/d to Turkey. Sonatrach plans to expand its exports, especially within Europe. The target is for exports to reach a total of 974.7 Bcf per year,or 2.7 Bcf/d, in 2000. At this time total production capacity is expected to be 1,165.4 Bcf per year.
ELECTRICITY:
Legislation pending in parliament would end the monopoly over power production held by state-run Sonelgaz and clear the way for Algeria's first independent power projects (IPPs).
According to Middle East Economic Digest, IPPs totaling $12 billion are planned. These include: 1) a 1,200 MW-Hadjret Ennous plant near Tipasa, scheduled for completion in 2003-4; 2) a 2X600-MW Terga plant near Oran Tipasa, scheduled for completion in 2005-6; and 3) a 2X600-MW Koudiat Draouch plant near Annaba, scheduled for completion in 2003-4.
In the nearer term, the 450-MW Hamma gas turbine plant in Algiers is moving ahead toward commissioning in 2000. The plant was originally planned as a private project, but is instead being funded with "soft" Arab and Islamic financing. Private financing is also planned for a three-by-100-MW gas turbine unit at Hassi Messaoud.
Sonelgas is expanding the gas distribution network to provide gas as a fuel in industry and homes. Sonelgas plans to invest $15.5 billion during the period 1996-2001 to develop and expand electricity production and distribution through the country. Algeria has two links to the Moroccan electricity grid and supplies over 550 GWh of electricity to Morocco.
Sonatrach has recently awarded a $107-million contract to Italy's GE Nuovo Pignone to build the first privately financed gas-fired power plant at Hassi Berkine. GE Nuovo Pignone, a subsidiary of General Electric, will also provide a gas treatment system, liquid fuel gas turbine storage and services.
Another Italian firm, Ansaldo Energia, has started work on the Algiers Hamma power station as a turnkey supplier to Sonelgaz. The project is being financed by various development agencies in the Gulf countries.
ENERGY OVERVIEW
Energy Minister: Chakib Khelil
Proven Oil Reserves (1/1/00E): 9.2 billion barrels
Oil Production (1999E): 1.36 million bbl/d (of which 772,301 bbl/d is crude, 430,000 bbl/d is condensate, 155,000 bbl/d is NGLs)
Oil Production Capacity (2000E): 1.5 million bbl/d
OPEC Crude Oil Production Quota (4/1/99): 731,000 bbl/d
Oil Consumption (1999E): 235,000 bbl/d (2000F): 240,000 bbl/d
Oil Refining Capacity (1/1/00E): 502,665 bbl/d
Net Oil Exports (1999E): 967,999 bbl/d (2000F): 985,000 bbl/d
Crude Oil Exports to the United States (Average 1999E): 253,000 bbl/d
Natural Gas Reserves (1/1/00E): 159.7 trillion cubic feet (Tcf)
Natural Gas Production (1998E): 2.6 Tcf
Natural Gas Consumption (1998E): 0.7 Tcf
Natural Gas Exports (1998E): 1.9 Tcf (2000F): 2.1 Tcf
LNG Customers (1998): France, Spain, United States, Italy, Belgium, Turkey,
LNG Exports to the United States (1998E): 68.6 billion cubic feet
Natural Gas Pipeline Customers (1998): Italy, Spain, Tunisia, Slovenia, Portugal
Natural Gas Export Capacity (1999E): 2.44 Tcf (1.24 Tcf via pipeline, 1.20 Tcf via LNG tankers); (2000F): 2.6 Tcf (1.38 Tcf via pipeline, 1.22 Tcf via LNG tankers).
Recoverable Coal Reserves (1998E): 44 million short tons (MMST)
Coal Production (1998E): 0.02 MMST
Coal Consumption (1998E): 0.84 MMST
Net Coal Imports (1998E): 0.82 MMST
Electric Generation Capacity (1998E): 6.0 gigawatts
ENVIRONMENTAL OVERVIEW
Minister of Public Works, Urban Development and the Environment: Mohamed Ali Boughazi
Total Energy Consumption (1998E): 1.3 quadrillion Btu* (0.3 percent of world total energy consumption)
Energy-Related Carbon Emissions (1998E): 23.9 million metric tons of carbon (0.4 percent of world carbon emissions)
Per Capita Energy Consumption (1998E): 43.3 million Btu (vs. U.S. value of 350.7 million Btu)
Per Capita Carbon Emissions (1998E): 0.8 metric tons of carbon (vs. U.S. value of 5.5 metric tons of carbon)
Energy Intensity (1998E): 18,600 Btu/ $1990 (vs U.S. value of 13,400 Btu/ $1990) **
Carbon Intensity (1998E): 0.34 metric tons of carbon/thousand $1990 (vs U.S. value of 0.21 metric tons/thousand $1990)**
Sectoral Share of Energy Consumption (1997E): Industrial (48.4 percent), Transportation (28.3 percent), Residential (23.4 percent)
Sectoral Share of Carbon Emissions (1997E): Industrial (43.9%), Transportation (33.0 percent), Residential (12.1 percent).
Fuel Share of Energy Consumption (1998E): Natural Gas (64.4 percent), Oil (34.0 percent), Coal (1.6 percent),
Fuel Share of Carbon Emissions (1998E): Natural Gas (66.5 percent), Oil (31.3 percent), Coal (2.2 percent)
Renewable Energy Consumption (1997E): 22.4 trillion Btu* (1% increase from 1996)
Number of People per Motor Vehicle (1997E): 19.2 (vs. U.S. value of 1.3)
Status in Climate Change Negotiations: Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified June 9th, 1993). Not a signatory to the Kyoto Protocol.
Major Environmental Issues: Soil erosion; desertification; river and coastal water pollution due to the dumping of raw sewage, petroleum refining wastes, and other industrial effluents; inadequate supplies of potable water.
Major International Environmental Agreements: A party to Conventions on Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Law of the Sea, Ozone Layer Protection, Ship Pollution, Wetlands. Has signed, but not ratified, the Nuclear Test Ban Treaty.
· The total energy consumption statistic includes petroleum, dry natural gas, coal, net hydro, nuclear, geothermal, solar and wind electric power. The renewable energy consumption statistic is based on International Energy Agency (IEA) data and includes hydropower, solar, wind, tide, geothermal, solid biomass and animal products, biomass gas and liquids, industrial and municipal wastes. Sectoral shares of energy consumption and carbon emissions are also based on IEA data.
OIL AND GAS INDUSTRIES
Organizations: Enterprise Nationale pour la Recherche, la Production, le Transport, la Transformation et la Commercialisation des Hydrocarbons (Sonatrach) - State-owned company for exploration, transport and marketing of petroleum, natural gas and related products; Enterprise Nationale de Raddinage des Produits Petroliers (Naftec) - Operates and manages all refineries; Enterprise Nationale de Commercialisation et de Distribution des Produits Petroliers (Naftel) - Domestic product distribution. Societe de Conditionnement, Comercialisation & Transport de Gas Industriels (Cogiz) - produces natural gas by-products.
Terminals: Algiers, Annaba, Arzew (LNG)(condensate), Bejaia, Oran, Skikda (LNG), La Skhirra (Tunisia)(crude)
Natural Gas Export Pipelines: TransMed (Hassi R'Mel- Tunisia-Sicily-Italy (Minerbo)), Maghreb-Europe Gas (MEG) (Hassi R'Mel-Morocco-Spain (Cordoba)-Portugal (Leiria)
Crude Oil Refineries (capacity-bbl/d)(1999E): Skikda (351,800), Arzew (58,632), el-Djazair (63,323), Hassi Messaoud (28,910)
LNG Facilities (Design/Refurbished Capacity - billion cubic feet per year) (1997): Arzew GL4Z (54), Arzew GL1Z (429), Arzew GL2Z (341.3), Skikda GL1K (287)
Selected Foreign Oil Company Involvement: Agip, Anadarko, Arco, British Petroleum, BHP, Cepsa, Daewoo, Exxon, Lasmo, Louisiana, Maersk, Mobil, Neste Oy, Oryx, PetroCanada, Phillips, Ranger, Repsol, Sasol, Samsung, Sun Oil, Talisman, Total, Wintershall, YPF
Source: United States Energy Information Administration.
© 2000 Mena Report (www.menareport.com)
