Algeria increases gas production thanks to deals with the United States, aims for Europe’s energy security

Algeria increases gas production thanks to deals with the United States, aims for Europe’s energy security
Algeria increases gas production thanks to deals with the United States, aims for Europe’s energy security
As the second largest supplier of natural gas to the European Union, after Norway, via pipelines, Algeria is a trusted partner for Europe as it seeks to diversify its energy sources amid global changes.

Tags: Algeria, gas production, United States, ExxonMobil, European Union, Sonatrach,

Algeria signs hydrocarbon deals with US companies to increase gas production and supply Europe

by Dean Mikkelsen

Algeria, seeking to strengthen its status as a key energy supplier, has stepped up collaborations with US companies to increase its natural gas production and consolidate its role as a crucial supplier to Europe. As part of a strategic pivot in European energy supplies, Algeria signed major hydrocarbon deals on Thursday, underscoring the North African nation’s growing influence in the global energy market.

The Algerian national company, Sonatrach, and the American oil giant ExxonMobil have signed a memorandum of understanding focused on the development of hydrocarbon resources in the Ahnet and Gourara basins, located in the vast desert regions of Algeria. This partnership aims to integrate advanced technologies and meet strict sustainability and environmental standards, Sonatrach highlighted in a recent press release.

Meanwhile, US oil services leader Baker Hughes has secured a contract to improve operations at the Hassi R’Mel gas field, Algeria’s largest, as part of a wider deal with Sonatrach and the company Italian Mayor Tecnimont. Baker Hughes is responsible for installing 20 compression trains at three strategic locations in the field, aimed at improving efficiency and capacity, the company said.

“Today’s announcement marks an important milestone in our historic collaboration with Sonatrach on key energy projects in Algeria that have played a crucial role in supplying reliable energy to Europe,” said Lorenzo Simonelli, Chairman and CEO of Baker Hughes. “We have long believed that it is crucial to increase the share of gas in the global energy mix to help achieve a low-carbon economy. This project helps solve energy producers’ multifaceted challenge of promoting sustainable energy development as energy demand increases. We are proud to support such a crucial energy project in partnership with Tecnimont. »

Currently, Algeria produces around 104 billion cubic meters (Gm³) of natural gas per year and has set ambitious targets to increase its production by 10 Gm³ by 2028. As the second largest supplier of natural gas to the he European Union, after Norway, via pipelines, Algeria is a trusted partner for Europe as it seeks to diversify its energy sources in a context of global changes.

The urgency to increase gas production is compounded by the rapid depletion of Algeria’s conventional gas reservoirs. The transition to unconventional sources has become essential for two main reasons: meeting growing domestic demand and meeting delivery obligations to Sonatrach’s international customers.

Notably, Algeria holds the third largest shale gas reserves in the world, estimated at 707 trillion cubic feet (Tcf). This places the country alongside big players like China and Argentina, where shale gas accounts for around 50% of total production. Meanwhile, the United States dominates global shale gas extraction, currently being the world’s largest natural gas producer with annual production exceeding 1070 Bcm. The United States is also the main supplier of liquefied natural gas (LNG) to Europe.

These strategic agreements and Algeria’s ambitious plans not only increase its production capacities, but also strengthen its role as a reliable energy supplier for Europe.

DEAN MIKKELSEN
Dean Mikkelsen brings more than two decades of extensive experience in the oil and gas sector to his role as editor-in-chief of Oil & Gas Middle East. With a dynamic background spanning exploration and production,… More by Dean Mikkelsen

Oil & gas MEE, 05/24/2024

#Algeria #UnitedStates #ExxonMobil #Gas

-

-

PREV TotalEnergies: the Senate commission of inquiry recommends that the State “take ownership” of the group
NEXT at what time and on which channel to watch the fight?