Page 8 - GLNG Week 10 2021

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Sonatrach touts new long-

term gas marketing strategy

PROJECTS & ALGERIA’S national oil company (NOC) marketing its gas and would continue to be so.
COMPANIES Sonatrach is developing a new long-term mar- Thus far, it said, responding to fluctuations in
keting strategy for its natural gas in response to the market and adapting to shifts in customers’
increased competition for market share. needs “has enabled Algeria to consolidate its
In the most recent edition of its corporate position as essential gas supplier for Spain and
newsletter, Sonatrach acknowledged that global Italy.”
gas markets had been significantly disrupted in The company also stressed, though, that it
recent years. This disruption has arisen because was not focusing solely on European gas mar-
new exporters such as the US have made inroads kets. It reported that it was working to optimise The strategy
in some of the established markets for Algerian its gas extraction and LNG production facilities
gas, even as established large-scale exporters in order to serve other regions such as Asia, seeks to make the
such as Russia have battled for market share, it where energy demand has been growing.
explained. (It also stems from the lower prices Additionally, Sonatrach said it remained most of Algeria’s
that have resulted from increased competition, committed to covering domestic gas consump-
it added.) tion. As such, the new strategy “will allow it diverse options
Under these circumstances, Sonatrach must to guarantee the country’s energy security, by for exporting
adapt, the newsletter said. To this end, the NOC remaining a reliable supplier of gas, capable of
is drawing up “a long-term strategy aimed at responding to a growing demand for energy, at a gas, which
consolidating its shares in its traditional markets national and international level,” the newsletter
and maximising its revenues, while meeting con- said. include pipelines
stant national demand.” Achieving these goals is likely to require
On the one hand, this new strategy aims to more than a new long-term marketing strategy. as well as gas
help Algeria take advantage of its proximity to Algeria saw its gas output sink to record lows liquefaction
European gas markets compared to other sup- in 2019, and pipeline exports to Spain and Italy
pliers, the company said. On the other hand, dropped in the same year. LNG exports then plants and LNG
it stated, the strategy seeks to make the most declined in 2020, even as production of oil and
of Algeria’s diverse options for exporting gas, gas declined. At the same time, domestic gas tankers.
which include pipelines as well as gas liquefac- demand has been rising consistently since 2010,
tion plants and LNG tankers. and plans for the development of the country’s
Sonatrach went on to say that it was try- untouched shale gas reserves have not gained
ing to be as flexible as possible with respect to much momentum.™

P8 www. NEWSBASE .com Week 10 12•March•2021