Insight
What next for Algeria's burgeoning gas market?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Algeria’s sales gas production has increased by 25% over the last four years. Increases have been driven by reducing gas volumes reinjected to support liquids production and new greenfield developments, including in Algeria’s frontier southwest. International Oil Company (IOC) led Phase 1 projects in the southwest have proven challenging, due to technical complexities associated with tight reservoirs: low flow rates, high CO2 and high costs. Sonatrach, with 100% equity, is advancing a second Phase of development in these projects despite the downside risk. Some new projects will add incremental growth, potentially increasing supply to 120 bcm by 2027. But Algeria needs more new sources of gas to offset declining production from legacy fields, including the ageing Hassi R’Mel, which still accounts for around half of all sales volumes.
Table of contents
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Executive Summary
- Algeria rejuvenates its gas sector
- OPEC quotas allow Algeria to optimise gas sales
- Long-stalled developments come onstream – can Phase 2 deliver?
- Tin Fouye Tabankort and El Assel to supplement Phase 2 projects
- Reliance on Hassi R’Mel to continue
- Italy: Algerian piped gas is well positioned, but must respond to mounting competition and price pressure
- Spain: Demand for baseload, competitively priced Algerian piped gas remains strong
- Algeria’s upstream corporate landscape likely to diversify significantly in 2025
Tables and charts
This report includes the following images and tables:
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Gross gas and oil production*Sales gas by main field*Algeria's main gas fields and gas infrastructure
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Southwest fields productionAlgerian Market Balance*Historic Algerian gas exportsIberia vs Italy piped export splitItaly – Algerian piped supply vs LNG imports and total demand*Iberia – Algerian piped supply vs LNG imports and total demand*MoUs signed by Sonatrach and ALNAFT over last two yearsMoUs signed by Sonatrach and ALNAFT over last two yearsGovernment share and IRRs for onshore model gas field
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What's included
This report contains:
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