Algeria discovers new gas field

18932040435 e21bc05b79 zAlgeria’s Energy Minister Mohamed Arkab said that the country has made an important gas discovery in the southwest province of Tindouf, which could help the country boost exports and maintain its market share abroad

Algeria is a major gas supplier to Europe, but its export volumes have been threatened by rising domestic consumption and a failure to increase production in recent years.

“This field has positive indications. It has the capacity to produce some 275 cubic meters of gas and nearly 300 litres of condensate per hour,” Arkab told state news agency APS as he visited the new field.

“The discovery of gas, for the first time in this province, represents an important phase for the economy.” He did not state when the field might start production.

Arkab added that the state-owned energy firm Sonatrach would make further assessments of the capacity of the field.

Algeria, which produces about 135 bcm of gas a year, has started to renew supply contracts with European clients as current contracts are due to expire by the end of this year or in early 2020.

Algeria’s economy relies heavily on gas and crude oil, and the government has drafted a new energy law that provides incentives for investors to attract foreign firms.

Many foreign investors have stayed away in the past years, citing unattractive contract terms and bureaucracy.

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