In December 2022, the President of the Republic Abdelmadjid Tebboune expressed Algeria’s ambition in terms of gas: to double its production, which was then 100 billion cubic meters, and release half for export.
Two years later, Sonatrach, the country’s energy giant, is working to achieve this objective by providing the necessary means. It mainly relies on the giant Hassi R’mel gas field, the largest in Algeria. A $2.3 billion project has just been launched to optimize the field’s yield. This is the so-called stage 2 of phase III of the project to create the Hassi R’Mel boosting installations.
Algerian gas production faces two major challenges: meeting the ever-increasing domestic consumption and meeting international market demand. Algeria was particularly asked to increase its gas deliveries to Europe after the outbreak of war in Ukraine in February 2022.
In their development strategy, the Algerian authorities have been counting, for several years, on the diversification of the economy, without however turning away from hydrocarbons, in particular gas, of which Algeria has proven reserves among the largest in the world.
In January 2022, Sonatrach announced investments of $40 billion until 2026 to strengthen its gas and oil production and export capacities. In December 2023, the amount was increased to $50 billion over four years (2024-2028), including $36 billion in exploration and production. For Algeria, it is a question of perpetuating its production and maintaining its place as a major and reliable supplier of energy, particularly for Europe.
Natural gas: Algeria boosts the Hassi R’mel deposit
Investments are gradually taking shape. On December 1, 2024, Sonatrach officially launched in the presence of its CEO, Rachid Hachichi, stage 2 of phase III of the strategic project “ Boosting Hassi R’Mel ».
The field provides around a quarter of Algeria’s daily gas production. According to the American platform Energynews, the field has already seen, thanks to two projects completed in 2004 and 2009, almost 80% of its exploitable gas recovered. This new phase of the project is intended to establish three gas compression stations by 2027. The objective being to extend the viability of the Hassi R’mel field and to extract additional volumes of gas.
The project is very promising. Sonatrach expects to maintain production at 188 million m3/day with the recovery of additional reserves of a volume of 121 billion m3 of gas in the long term, 7 million tonnes of condensates and 3 million tonnes of petroleum gas liquefied (LPG). Quantities expected to contribute to maintaining current production levels while meeting growing demand, both domestic and international.
The investments made match the ambition. The project has a budget of 2.3 billion dollars and will be carried out with global partners with great know-how in this area, the American Baker Hughes, the Italians Tecnimont and Nuovo Pignone International SRL. The contract between Sonatrach and these three companies was signed in May 2024.
The investments launched or envisaged by Algeria aim to increase its annual gas production from 137 billion cubic meters currently to 200 billion by 2028, indicates Energynews.
« Algeria establishes itself as an essential player » on the European market where “ demand for natural gas remains strong, particularly in the context of the energy transition », Writes the platform based in Washington.
With the major project launched in Hassi R’mel, Algeria intends to honor its international commitments and strengthen its position as an energy leader in Africa. It is, continues Energynews, a “ strategic positioning ” Who ” is part of a long-term vision to diversify and sustain income from natural resources ».
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