National energy consumption is constantly growing. It increased by 5% at the end of last September, compared to the same period in 2023, according to the Minister of Energy and Mines, Mohamed Arkab, who spoke on the issue at the end of October before the deputies .
This consumption is expected to continue to increase in the coming years with demographic pressure, the challenges to be met on an economic level and commitments to partners, particularly for gas exports. Satisfying the needs for electrical energy and gas while awaiting the development of unconventional energies thus requires the strengthening of investors in the sector.
What the government is working on through the projects completed and those in the launch phase. But not only that, the rationalization of energy is also among the priorities of the sector. There is no shortage of measures in this framework. But the application stalls in many cases. Which means that Algeria is still far from rational use of energy.
This is the case for gas, the subject of the latest decision marking the end of generalized subsidies for natural gas prices, whose targeted production in five years is 200 billion cubic meters (m3) compared to 137 billion m3 in recent years. years. And this, for a planned export volume of 100 billion m3 per year.
Will the end of cheap gas for manufacturers and economic operators help achieve this objective? The question deserves debate knowing that overall gas consumption is mainly driven by households, the tertiary sectors and agriculture, which represent a total of 66% of national natural gas consumption, according to the national energy balance of the Ministry of energy and mines dating from last February and covering 2022.
The report in question shows that internal gas consumption recorded an increase of 5% compared to 2021 and that more than 12.7 million toe (tonne of oil equivalent) were used to cover the needs of the household, tertiary and of agriculture. A demand induced by the delivery of various housing programs and which will experience yet another increase thanks to announced projects (AADL 3 in particular).
Industry’s share is only 34%, with a quantity estimated at just over 6.4 million toe, or a third. It is on this part that the government is seeking to intervene by deciding to set thresholds for subsidies for natural gas, which represents 40% of national energy consumption. How will this measure be implemented? What are the targeted industrial sectors?
What will be the impact on the rationalization of gas use and many other questions arise. We still have to wait for the implementing decree to find out a little more about this system which marks a step in the reform of the subsidy system, including those dedicated to energy, the cost of which was revealed in 2020 by the former minister of energy and mines is around 15 billion dollars.
