New gas production starts in Algeria

Repsol said it has started work at a complex that could produce the equivalent of 10 percent of Spanish demand for natural gas.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |  Dec. 18, 2017 at 8:43 AM
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Dec. 18 (UPI) -- Spanish energy company Repsol said it started production from a complex of Algerian gas fields, finishing off one of its most significant African developments.

Repsol CEO Josu Jon Imaz joined Algerian Prime Minister Ahmed Ouyahia and Abdelmoumen Ould Kaddour, the director-general of state energy company Sonatrach, in a ceremony marking the start of production from the Reggane Nord gas fields

"This project fits in with the company's focus on gas as a key transition fuel into a less carbon-intensive energy mix," the Spanish company stated. "Two-thirds of Repsol's overall production is gas, which also accounts for three quarters of the company's reserves."

There are six individual fields within the Reggane Nord complex. At full capacity, production will be the equivalent of about 10 percent of total Spanish demand for natural gas.

Repsol's net production from Algeria is around 13,000 barrels of oil equivalent per day and the company said production from Reggane Nord is tied to networks that include about 45 miles of pipelines connected to Algeria's export facilities.

Algeria has the 10th-largest natural gas deposits in the world and is the third-largest supplier to Europe.

Terrorists sympathetic with al-Qaida stormed the country's In Amenas natural gas facility in January 2013, leaving 38 civilians and 29 militants dead. Norwegian energy company Statoil and its partners suspended work at the facility along the Libyan border for more than a year following the attack.

Engineering company KBR in October was awarded a contract for management support services by a joint venture between British energy BP, Algerian energy company Sonatrach and Norwegian major Statoil for In Amenas.

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