Total, Cepsa, Sonatrach to greatly expand natural gas production in Algeria

Total (37.75%), Sonatrach (51%) and Cepsa (11.25%) have announced that the Algerian National Oil and Gas Development Agency has approved development for the Timimoun natural gas project. During an exploration and appraisal program begun in 2003, six wells were drilled. development is expected to begin during the 4th quarter of 2009. Forty wells will test 8 structures in an area that covers 2,500 square kilometers.A pipeline will be built from the region to the Hassi R'Mel processing center.

The production of 1.6 billion cubic meters/year (160 million cubic feet/day) beginning in 1913 will allow Algeria to maintain its existing position as a major supplier to the world of both pipeline natural gas and LNG. Since the 1970s, supergiant Hassi R'Mel field located between Ghardaia and Laghouat has supplied natural gas for Europe via pipelines that run into southern Italy in the east and southern Spain in the west. More pipelines to Europe are under construction. Hassi R'Mel is now in decline and under pressure maintenance by waterflood. It still is a major contributor to the total natural gas stream which has been running at about 255 billion cubic feet/month for several years now. Algeria was a pioneer in the production of liquefied natural gas (LNG) and Sonatrach  today operates a large  LNG processing unit at Arzew. Considering that demand for natural gas is expected to grow rapidly because of its abundance and low cost, North African production can only grow. In 1987, 20 small to medium-sized gas fields existed in the Timimoun-Adrar region. By 1993 that had increased to 28 and by the end of 2006 to 39. With 8 presumably huge structures yet to be put on the line, the region will no doubt be in position to maintain plateau production for at least  30 years. Algeria is a vast natural gas region with much of the country relatively unexplored.  Its potential is sure to go up.

Michael Lynch consults with leading institutions through GLG