Sonatrach, the Algerian public hydrocarbon giant, is ready to supply more gas to Europe, in the event of a drop in Russian exports linked to the Ukrainian crisis, by routing it in particular via the Transmed gas pipeline linking Algeria to Italy, said his boss, Sunday, February 27.
Sonatrach is “a reliable supplier of gas for the European market and is ready to support its long-term partners in difficult situations”, declared its CEO, Toufik Hakkar, to the daily Liberté. Europe is the “natural market of choice” for Algeria, which currently contributes 11% to its gas imports, he underlined.
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Additional supplies of natural gas or liquefied natural gas (LNG) nevertheless remain dependent on the “availability of surplus volumes after satisfaction of domestic market demand” and “contractual commitments” to foreign partners, he added. Sonatrach “has unused capacity on the Transmed gas pipeline”, which could be used to “increase supplies to the European market” , according to Mr. Hakkar. This gas pipeline can transport up to 32 billion cubic meters per year, four times more than the Medgaz gas pipeline which supplies Spain.
“Two or three billion cubic meters more”
“Algeria exports a maximum of 22 billion cubic meters via the Transmed gas pipeline” , which leaves a capacity of 10 billion cubic meters to export, Abdelmajid Attar, former Algerian Minister of Energy and former CEO of Sonatrach. The gas could also be liquefied and sent through LNG carriers, knowing that “the liquefaction units that exist in Algeria are only operated at 50/60% of their capacity”, according to Mr. Attar. However, Algeria could not on its own “compensate for the drop in Russian gas supply”, indicates the expert, estimating that it could “provide the EU with 2 or 3 billion more cubic meters” in great maximum.
But in the “medium term, in four or five years, Algeria will be able to send larger quantities” , continues Mr. Attar, judging it necessary beforehand to “develop new reserves essentially made up of unconventional gas” (shale gas) . Algeria plans to invest 40 billion dollars (about 35.5 billion euros) between 2022 and 2026 in the exploration, production and refining of oil, as well as in the prospecting and extraction of gas.
An extraordinary meeting of the Council of European Ministers responsible for energy is to be held in Brussels on Monday, while several European countries depend heavily on Russia for their gas imports.
