US rating agency Moody’s says record storage helped by LNG imports positions EU well for this winter and next
Moody’s Investors Service, the US credit rating agency, said that record high natural gas storage of almost 98 percent as of end November helped by LNG deliveries positions the European Union well to meet the needs of this winter season with very limited risks of energy shortages.
Eni supplies first commercial LNG cargo to fourth Italian import terminal at the Tuscan port of Piombino
Italian energy major Eni has delivered the first commercial liquefied natural gas shipment to the nation’s fourth import terminal at the Tuscan port of Piombino.
Algeria outlines nation’s energy transition plans backed by domestic natural gas and LNG and gas export
Sonelgaz, the national electricity and natural gas company of Algeria, has been put in charge by Minister of Energy and Mines Mohamed Arkab of helping to manage “a gradual and responsible” energy transition backed by gas while noting Sonelgaz has run renewable integrated energy projects since the 1980s.
During a speech at Algeria’s 27th Energy Day held on March 4 with an event at the National Polytechnic School of Algiers, the Minister outlined the North African nation’s approach to complement its domestic energy needs while exporting more LNG and pipeline gas to Europe.
“Algeria's energy policy aims to move forward resolutely towards the realization of a progressive and responsible energy transition,” said Arkab.
“This requires the adoption of a diversified energy mix taking into consideration all the energies available, the least expensive and the cleanest while benefiting from the achievements of improving energy capacity and working to control energy consumption and to preserve natural resources for future generations,” explained Arkab.
In this regard, Arkab recalled that Algeria has worked since the 1980s, through Sonelgaz, to integrate renewable energies, by supplying 20 villages with solar energy in the South of the country with the creation of solar power stations with a total power of 344 megawatts (MW) and the launch of hybrid projects with capacity of 50 MW.
Various roles
As part of the development of the use of electric vehicles in Algeria, the Minister said that Sonelgaz would carry out experimental projects with a view to setting up 1,000 charging stations for electric vehicles.
Arkab added that natural gas flaring in Algeria was targeted to reach zero and that was the responsibility of oil and gas company Sonatrach.
The Minister also explained that similarly, Sonatrach was working with the Algerian Space Agency and in collaboration with the World Bank to carry out scientific and technological research with a view to measuring and definitively limiting methane gas emissions.
The Minister said that Algeria’s Energy Day was an important opportunity to debate and exchange views between experts, economic operators and sectors concerned with energy, scientific research and the environment.
This was an opportunity for energy experts to lead several conferences, and engineering students to present presentations on themes related to energy resources and the project of an efficient energy model by 2035 and 2050. .
Sonatrach spending
Sonatrach already plans to invest more than $30 billion in the exploration and production of hydrocarbons and to upgrade facilities to improve its position in global markets for LNG as well as pipeline gas for Europe.
As part of Sonatrach's five-year investment plan (2023-2027) the sum of $40Bln has been set aside and more than $30Bln will be allocated to exploration and production with the objective of increasing production in the short and medium term.
Nearly $1Bln will be devoted to Sonatrach’s projects aimed at the company's contribution to the energy transition. These include flared gas recovery projects at production sites and the LNG plants at Skikda and Arzew.
Sonatrach signed a contract in 2022 with two Chinese engineering companies, Sinopec Luoyang Engineering and Sinopec International Petroleum Services Corp., for improvement work at the Skikda LNG plant.
The contracts include the dismantling of two 20-year-old storage tanks and the construction of a new tank of 150,000 cubic metres capacity and the modernization of the jetty and loading facilities to accommodate larger vessels.
Algerian leaders and Sonatrach's CEO meet with Italy’s Eni for talks centred on Trans-Mediterranean Pipeline
Discussions have taken place in the Algerian capital Algiers between the Chief Executive of Italian oil and gas company, Claudio Descalzi and Algeria’s Prime Minister Aymen Benabderrahmane, the country's Energy Minister Mohamed Arkab and Algerian energy company Sonatrach's CEO Toufik Hakkar.
Algerian Skikda LNG plant still closed as gas supplier to Europe also continues Covid-19 measures
Sonatrach, the Algerian state energy company, was continuing a 10-day shutdown of the Skikda liquefied natural gas plant on the Mediterranean coast because of a technical issue, as the nation also continued to implement a curfew in 14 provinces to try and bring the Covid-19 pandemic under control.
Sonatrach said the closure of the Skikda facility came after the sudden failure of a gas turbine control mechanism.
Sonatrach is one of the main suppliers of LNG and pipeline natural gas to Europe.
It operates two LNG plants at Skikda and Arzew on the Mediterranean coast and via three pipelines to Spain and Italy.
Algerian gas supplies are carried from the Hassi R'Mel hub on the Medgaz pipeline via Beni Saf to Almeria in southern Spain and on the Maghreb-Europe Gas Pipeline from the Hassi R'mel field through Morocco to Cordoba in Spain.
Pipeline gas also goes to Italy through the Trans-Mediterranean Pipeline from Algeria via Tunisia to Sicily and then onwards to the mainland of Italy.
Algerian LNG exports have been falling in recent years and amounted to a combined 10.58 million tonnes per annum in 2020 from both the Skikda plant and the main Arzew facility, a decline of 13.5 percent.
Shipments from the North African country go to France, Italy, Turkey, Greece, Spain, the UK, India, Pakistan and several others.
The company said it was still carrying out repairs at Skikda on the affected equipment.
The LNG plant at Skikda has a capacity to produce 4 million tonnes per annum.
“A technical issue occurred on June 11 at the Skikda LNG complex and led to the shutdown of this complex,” said Sonatrach.
“As a safety precaution, Sonatrach has decided to conduct a thorough inspection of the plant,” it added.
So far in 2020, Algeria has exported less than 7MT of shipments, which is around 50 percent of its technical nameplate capacity.
Meanwhile, the oil and gas producing nation is taking more lockdown measures to control Covid-19 in 14 of its 58 provinces.
The partial lockdown measures in the affected areas are from midnight to 04:00 on the morning of the next day and were extended in 14 Algerian provinces for a period of 21 days from June 21 as part of the fight against the spread of Covid-19.
The measures were approved by President Abdelmadjid Tebboune and Prime Minister Abdelaziz Djerad following consultations with the state Scientific Committee.
The Covid-19 measures concern the following 14 provinces: Algiers, Laghouat, Batna, Bejaia, Blida, Tebessa, Tizi-Ouzou, Setif, Sidi Bel Abbes, Constantine, M'Sila, Ouargla, Oran and Boumerdes.
Algeria permits move
May 12 (LNGJ) - Algeria, the leading natural gas supplier with two LNG plants on the Mediterranean coast and pipelines to Italy and Spain, is taking measure to improve and clarify the authorization process for constructing energy pipelines and infrastructure. They are now defined in two decrees signed by Algerian Prime Minister Abdelaziz Djerad. “The first draft executive decree defines the procedures for obtaining authorizations to construct a pipeline transportation system, while the second defines the procedures for obtaining authorizations to build structures for pipeline transportation of petroleum products,” said a statement.
LNG producer Algeria warns African countries risk being shunned by outside world over oil and gas
Algerian Minister of Energy and Mines, Mohamed Arkab, said at a meeting of 15 African energy-producing nations, six of them LNG exporters, that they should unite to find solutions to multiple challenges facing the hydrocarbon sector, in particular the energy transition and the lack of funding for fossil fuel projects.
Sonatrach CEO Hakkar outlines strategy on pipeline gas for industry and exports underpinned by LNG
Algerian state energy company Sonatrach, one of the main suppliers of LNG and pipeline natural gas to Europe, said it planned to increase production and sales in the coming year amid upgrades at its liquefaction plants at Skikda and Arzew on the Mediterranean coast and new natural gas discoveries for export in the future alongside industrial development in petrochemicals.
