Page 8 - AfrOil Week 01 2023

AfrOil PERFORMANCE AfrOil

European countries have been seeking to find their implementation, he said, addressing the
alternative sources after Russia’s invasion of National People’s Assembly on January 5.
Ukraine earlier in 2022. The European Union, Arkab highlighted the government’s efforts
which is largely dependent on Russian gas, has to secure growing domestic demand for energy,
seen energy supplies drop to less than 40% of pointing that the country will start manufactur-
normal levels since Russia invaded Ukraine and ing gas pipelines locally. The local production of
the West imposed sanctions against Moscow. At the pipes will take place in the El-Hajjar factory.
the same time, Algeria’s role as a gas supplier to The import substitution of pipes will help to
some EU countries, including Italy and Spain, supply all the sector’s stalled projects across the
has grown. country, Arkab pointed out.
Sonatrach signed agreements with Italy and He added that the project to supply the
Slovenia to supply 9bn and 300mn cubic metres municipalities of northern Milah with natu-
of gas respectively. ral gas is 88% completed, pointing out that its
Algerian gas is transported to Europe via the delay was due to a shortage of gas pipes and
Transmed-Enrico Matei and Medgaz pipelines, the difficult terrain. He confirmed that power
which pass through northern Algeria. The for- transmission stations in Milah will be supported
mer crosses Tunisian territory and then has an through two electrical substations of Wad Sejen
underwater section leading to Sicily, where it and Milaf with a capacity of 80 MV each. The
connects to the Italian gas grid, while the latter two stations will start operations in H1 2023.
crosses the western Mediterranean and makes The minister noted that the electricity con-
landfall in Spain. nection rate in the state reached 98.9%, while the
In the past, Sonatrach has also exported gas gas connection rate reached 65.81%, noting that
to Spain and Portugal via the Gas Maghreb-Eu- nearly 57 municipalities are currently connected
rope (GME) pipeline, which passes from north- to the gas network. He added that the electric
ern Algeria into Morocco on before continuing power and gas supply projects in the state are
to Europe. However, that route has not been progressing at a good pace, as the rate of hous-
available since last year, owing to political ten- ing electricity connection has recently climbed
sions between Algiers and Rabat. to 97%, and will reach 99% in 2023-2024 upon
Algeria was Europe’s third-largest gas sup- completion of the current projects.
plier in 2021 after Russia and Norway. The Arkab also confirmed that the project to
country pledged to increase its energy supplies complete the delayed power station in Ain Ous-
to Italy by 20% this year to around 25 bcm. sara (Djelfa) will partially start operations in the
Algeria was Spain’s biggest gas supplier last year, coming period and will be fully operational in
accounting for 43% of the total gas needs of the 2024. The facility will have a production capacity
European country. of 1.26 GW.
The minister explained that the delay
Accelerating energy projects recorded in the past years is due to the financial
In related news, Algerian Ministry of Energy problems and the implications of the coronavi-
and Mines Mohamed Arkab has pledged to rus (COVID-19) pandemic, stressing that the
accelerate the implementation of electricity and projects being implemented in petrochemicals
gas projects in a number of states during 2023 in a number of cities will give a great impetus to
while working to remove obstacles that hindered the economy and employment alike. ™

Gas production and transportation infrastructure in Algeria (Image: ISPI)

P8 www. NEWSBASE .com Week 01 05•January•2023