15 May 2007 - 09:38
  • News Code: 104680

Algerian state-owned energy group Sonatrach, a leading gas supplier to Europe, will triple liquefied natural gas (LNG) exports to the US to 12 billion cubic meters by 2010, the company’s chief executive said.

Mohamed Meziane told state radio the target would be reached after the completion of two big projects in the North African country, which are likely to help boost national gas output capacity by 12 billion cubic meters. The country produces both natural gas and LNG.

“We are present on the American market with about four billion cubic meters. The volume will reach between 10 billion and 12 billion cubic meters of natural gas, in the form of LNG,“ he said.

Algeria hopes to construct on time a big gas project known as Gassi Touil being developed by Spain’s Repsol YPF and Gas Natural.

Repsol and partner Gas Natural have reported technical difficulties in developing the $3 billion project in Algeria’s southern desert, which involves exploration and extraction, plus building a liquefaction terminal to process the gas for export.

The country is also rebuilding two gas units at a complex at the port city of Skikda after being destroyed by a fire in 2004.

“We have two projects: Skikda and Gassi Touil, which will increase our capacity by about twelve billion cubic meters. They will also help us increase exports to the US,“ Meziane said.

Sonatrach produces a total of about 62 billion cubic meters of gas per year, in the form of both LNG and natural gas, and is expected to reach a total of about 85 billion cubic meters of gas by 2010.

Half of the output is LNG, Meziane said.

 

PIN/ REUTERS

News Code 104680

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