RevueAlgerieEnergie Ang 10mars2015.indd

36 Pages·2015·6.78 MB·English

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January 2015
Algerian Energy Magazine
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Ministry of Energy - Tour A, Val d’Hydra - PO Box 677 Station of Algiers, Algiers, Algeria - www.mem-algeria.org
Message from the Minister of Energy

I am particularly pleased to seize the opportunity of the launch of the new
magazine of the Ministry of Energy, to extend my best wishes for the new year 2015
to the workers in our sector and to all those who contribute through their skills,
intelligence and commitment to promote the energy resources of our country, to
serve its social and economic development. I wish them and their families further
personal and professional success.
This first issue of the magazine « » is undoubtedly to pay tribute to them,
highlighting the marked improvement in our sector thanks to their efforts achieved
over the past year.
Our record for 2014 is really very encouraging and clearly positive for many indicators. The
program we are resolutely implementing together, under the national energy policy, is thus firmly
ongoing.
Its relevance and consistency, its efficiency and progressive dimension become even more
apparent every day. This is particularly reflected in the tangible effects of its implementation on our
fellow citizens’ living conditions and welfare, on the industrial and agricultural activities, as well as
on the provision of the financial resources necessary to the national economy and on our country’s
international influence.
Owing to a strong recovery of production, all key commitments were met regarding the domestic
energy market supply and the delivery of liquid and gaseous hydrocarbons to the international
market.
Fast growing electricity demand is even better met; public distribution of natural gas penetrates
larger and larger territories and the number of urban and rural households connected to natural
gas networks is multiplying in all wilayas throughout the country; desalinated water volumes also
increased substantially and contribute significantly to ensure greater availability of drinking water
and a more regular and larger access to this vital resource.
New and renewable energies development projects, based on proven abundant natural
resources and an adequate institutional framework, are started within of a thoughtful approach,
consistent with the requirements of an energy transition adapted to the current and future needs
of our country, and in line with the profound changes that mark the global energy landscape.
« », the Algerian Energy magazine, has the privilege to be launched in this context.
I am sure it will be keen to reflect this new dynamic in the energy sector in Algeria and its
ambitions and achievements. This communication medium will help participate in the evaluation
and analysis of policies and strategies underlying them and allow fruitful ideas, leading the necessary,
serene and enriching discussions we need in a very sensitive field, that of the energy sector, which
rightly raises the interest of all.
« » will undoubtedly in this regard, besides providing reliable and relevant information
on the energy sector activities in Algeria and on major national and international concerns that
shape the evolution of energy issues, offer national specialists, experts and researchers a platform
for expression and exchange, while being also open to international expertise.
Indeed, we have a genuine need to give new impetus to our institutional communication policy
and take a more active role in scientific and technical discussions, so useful in the development
of insights that make our approaches more legible, to attract the support and involvement of all
stakeholders.
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News & events News & events
Table of content
05
News & events
First Results for 2014 : The sector returns to growth
Sonelgaz - GE Partnership : The turbines manufacturing complex operational in 2017
Visit of Prime Minister to Oran : Inauguration of several industrial projects
Promotion and Development of Clean fuels: Commissioning of the first CNG filling station
Project of Ahnet : First drillings yield their results
North African oil and gas summit in Algiers : 450 experts discuss investment
4th bidding round for hydrocarbon research and exploration: Cabinet approves contracts
LPG winter campaign : Naftal gets closer to remote areas
South West gas pipeline GR5 : A new route for natural gas
National Competition : IAP helps prepare succession
International seminar on marine LNG : An emerging technology
Gas flaring : New methods and technologies for reducing gas flaring
Oil and gas markets: The year 2014
16th Ministerial Meeting of the Gas Exporting Countries Forum: The organization is strengthening
and acquires new instruments
Euro-Mediterranean Cooperation: Interconnection of Mediterranean countries power systems
24
OAPEC ministerial Meeting and 10th Arab energy Congress
Lima Conference on Climate Change : Lengthy and difficult negotiations
Analysis
28
Gas and Electricity Distribution : Modernizing Public Services
Figures
2014-2024 «Electricity and Gas» Development Plan : Over 6 000 Billion Dinars to meet demand
30
Files
Environmental Impact Assessment : A tool for resource conservation
Environmental protection: Some regulations and laws
AlgerNJiaan nEonue.ar gr0yy R 2ev0 i11ew5
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Director of publication
Cover picture Mr. Ali HACHED
Algerian Energy Magazine
Overhead view
No. 01 January 2015
GGMMSSTTaaoooohhssnnddee eaeae e ttlnlnrurgugnnddarar ib ibzzzEzEi i iinl-nl-nnee eGeGggccsstt eerrPP iinmnmccuueeiittababryryaannll iiDDllcucu EEi i ffssSSaallteteecrecrcicirtbrtbttuvuvruruiiirirctctcciiii no noeePPngngssaa rcrcttononememrrsspphhlleeiippxx ttoo bbee ooppeerraattiioonnaall of El Merk project DevelopmenBtA aOndS iEmMplementation
Algerian Energy Magazine Algerian Energy Magazine
News & events News & events
Table of content
First Results for 2014
05
The sector returns to growth
The sector continues its e(cid:299)orts to develop the country(cid:859)s energy resources. The first data of
the 2014 achievements show that the sector activities experienced an overall positive growth.
News & events
1. Hydrocarbons branch The year 2014 has seen a growth in 2. Electricity and natural gas
First Results for 2014 : The sector returns to growth
drilling activity, raising the number distribution Branch
Substantial increase in the
Sonelgaz - GE Partnership : The turbines manufacturing complex operational in 2017
of wells drilled to 116 against 93
production of hydrocarbons As for electricity and natural gas
Visit of Prime Minister to Oran : Inauguration of several industrial projects wells in 2013, namely an increase
distribution, 2014 was marked
Primary production of
of 25%. This effort led to the
Promotion and Development of Clean fuels: Commissioning of the first CNG filling station by a large effort that led to
hydrocarbons recorded in 2014 a
completion of 32 discoveries by
meeting demand, both in terms of
Project of Ahnet : First drillings yield their results significant increase of more than
Sonatrach and its partners, a level
availability of products and quality
4% compared to the previous
North African oil and gas summit in Algiers : 450 experts discuss investment similar to that achieved in 2013. service.
year’s achievements. The overall
4th bidding round for hydrocarbon research and exploration: Cabinet approves contracts volume of this production reached 2014 was also marked by the Thus, no power constraint in terms
signing of 04 research contracts
200 million tons of oil equivalent of supply for electricity and gas
LPG winter campaign : Naftal gets closer to remote areas
under the 4th national and
(TOE), against 192 million TOE in systems were recorded in 2014,
South West gas pipeline GR5 : A new route for natural gas international invitation to tender
2013. This growth, which ended even in the most remote areas
for opportunities of research and
National Competition : IAP helps prepare succession the downward trend observed for of the country. This performance
exploitation of hydrocarbons.
many years, involved all products, reflects the investment efforts for
International seminar on marine LNG : An emerging technology
as shown below: the development of production
Expansion of refining capacity
Gas flaring : New methods and technologies for reducing gas flaring capacity and the electricity and gas
The refining activity recorded
Oil and gas markets: The year 2014 networks, with the commissioning
Units 2013 2014 Evolution (cid:894)(cid:1081)(cid:895) in 2014 a sharp increase of 32%
of several facilities, substations and
16th Ministerial Meeting of the Gas Exporting Countries Forum: The organization is strengthening of the processed volume (crude
lines.
and acquires new instruments oil and condensate), following
Crude oil and million The national electricity production,
58 61 +4,8 the completion of the refineries
Euro-Mediterranean Cooperation: Interconnection of Mediterranean countries power systems condensate tons
therefore, amounted to 63 TWh
rehabilitation in Arzew and Skikda.
24
OAPEC ministerial Meeting and 10th Arab energy Congress in 2014, against 60 TWh in 2013,
Thus, refineries production reached
Liquefied
million reflecting a growth of 5%.
Lima Conference on Climate Change : Lengthy and difficult negotiations Petroleum Gas 7 8 +24,3 30 million tons, which allowed
tons
(cid:894)LPG(cid:895)
a sharp reduction in imports of The sector continues to improve
Analysis petroleum products, including access to energy for the general
billion
Natural gas m3 127 131 +3,0 diesel and gasolines. Following population, an index of human
the decision taken to build new
development, as illustrated by
28
Gas and Electricity Distribution : Modernizing Public Services refineries, site preparation work
the evolution of the number of
Total mTilOliEon 192 200 +4,4 continued in 2014 and a tender has subscribers in 2014, to 8.1 million
Figures
been launched.
(+ 4%) for electricity and 4.2 million
The construction of refineries in (+ 7%) for natural gas, raising
This increase is mainly due to the
2014-2024 «Electricity and Gas» Development Plan : Over 6 000 Billion Dinars to meet demand Biskra, Hassi Messaoud and Tiaret the connection rate respectively
commissioning of Hassi Messaoud
30 and of the fuel cracking unit in to 98% and 52.5%. With regard
Files LPG unit and the start of production
Skikda should start in 2015. to renewable energy, 2014 was
of gas and oil fields in Hamra,
marked by the commissioning
As regards liquefaction, LNG
El Merk and Gassi Touil quartzite
Environmental Impact Assessment : A tool for resource conservation production grew by 16% to 30 of the Adrar wind farm with a
reservoirs.
total capacity of 10 MW and the
Environmental protection: Some regulations and laws million m3 of LNG in 2014 following
Intensification of exploration and the receipt of Arzew new train. Ghardaia pilot plant with a capacity
development drilling e(cid:299)orts of 1.1 MW.
AlgerNJiaan nEonue.ar gr0yy R 2ev0 i11ew5 The resumption of growth in Iwno trhthe nfioetildn go tfh pee sttraorcth oef mpriocadlusc, tiito ins The realization of photovoltaic
FFTTiihrhrsseett RRsseeeessccuuttlloottssrr ffrrooeerr tt22uu00rr11nn44ss ttoo ggrroowwtthh hydrocarbon production is the in 2014 of the ammonia and urea power plants in the highlands areas
result of the exploration and plant at Arzew (AOA), after the and Adrar, with a total capacity of
Director of publication
development effort which has Sorfert complex commissioning in 343 MW, continued in 2014. The
Cover picture Mr. Ali HACHED
Algerian Energy Magazine
Overhead view intensified in recent years. 2013. feasibility study for manufacturing
No. 01 January 2015
GGMMSSTTaaoooohhssnnddee eaeae e ttlnlnrurgugnnddarar ib ibzzzEzEi i iinl-nl-nnee eGeGggccsstt eerrPP iinmnmccuueeiittababryryaannll iiDDllcucu EEi i ffssSSaallteteecrecrcicirtbrtbttuvuvruruiiirirctctcciiii no noeePPngngssaa rcrcttononememrrsspphhlleeiippxx ttoo bbee ooppeerraattiioonnaall of El Merk project DevelopmenBtA aOndS iEmMplementation
Algerian Energy Magazine Algerian Energy Magazine 5
NNeewwss && eevveennttss News & events
solar-grade silicon was completed, of industries and households. This 2014, for a value of $ 58.5 billion, or
including the updating of the growth has affected all products, a decrease of 8% due to the fall in
national wind atlas and the as indicated below: prices on the international market.
identification of suitable sites for
ͳ refined products (+ 3%) to 18 Indeed, the price of the exported
the implementation of wind farms
million tons; oil barrel reached 99.2 dollars on
in the area of Touggourt, Hassi
average in 2014, against 109.1
Messaoud and Ghardaia. ͳ natural gas (+ 12%) to 38
dollars in 2013.
billion m3;
Achievements in energy efficiency
are ongoing, including the thermal ͳ power (+ 9%) to 59 TWh. The value of non-oil exports,
including petrochemicals, reached
insulation program of buildings,
4. Seawater desalination $ 1 billion in 2014, bringing total
the dissemination of low energy
light bulbs and the installation of The sector is committed to exports to $ 59.5 billion.
solar water heaters. However, if the completion of the national In addition, petroleum products
the sector experienced positive seawater desalination program, imports fell sharply (-40%) in 2014
growth in the various activities, under which the 10th desalination to $ 3 million tons, for a value of
there are still challenges ahead, plant, that of Megtaa in Oran, $ 2.5 billion. As for State incomes,
including the satisfaction of energy was commissioned in 2014, with an amount of 3,400 billion AD of
demand, showing a strong and a capacity of 500,000 m3 per day. oil tax was paid to the Treasury
steady growth, in all its forms. The production of desalinated in 2014, reflecting a decrease
water was 400 million m3 in 2014;
of 8% compared to the 2013
3. Domestic energy
up by 5% compared to the volume
achievements.
consumption
produced in 2013.
Domestic energy consumption In terms of investment, a global
rose to nearly 56 million TOE in 5. Income and investments amount of $14 billion has been
2014, i.e. an increase of more In terms of foreign trade, the mobilized by the hydrocarbons and
than 5% compared to 2013, driven overall volume of hydrocarbon energy branches in 2014, a level
mainly by the energy consumption exports reached 100 million TOE in similar to that of the previous year.
6 AAllggeerriiaann EEnneerrggyy MMaaggaazziinnee Algerian Energy Magazine
NNeewwss && eevveennttss News & events
Sonelgaz - General Electric Partnership
The turbines manufacturing
complex to be operational
in 2017
The project involves manufacturing(cid:853) in Algeria(cid:853)
complex technology equipment to support
the electricity generation development plan.
It is the first step towards the implementation
of the industrialization policy advocated by
the Sonelgaz Group.
Sonelgaz and General Electric created (gas turbines,
a new company in partnership, steam turbines,
called GEAT (General Electric Algeria generators and
Turbines) whose mission is to control systems) Manufacturing the first turbine as of 2017
implement a strategic project for the together with a
fabric through the creation of a
construction of an industrial complex production and assembly workshop,
subcontracting network around the
for the manufacture, in Algeria, a testing facility, storage areas and
complex.
of steam turbines, gas turbines, offices.
generators and control-command In order to enable the qualification
Production will begin in 2017
systems. of local suppliers in accordance with
The first stone of the industrial international standards, training
This complex will, on the one hand
complex was laid in Aïn Yagout sessions are being planned for
(and in priority), meet the needs of
(Wilaya de Batna) on Monday, Algerian professionals to help them
the development plan in electricity
September 22, 2014, in the presence acquire the best global practices in
generation and on the other hand,
of the CEOs of both companies, the terms of production techniques and
to export a part of the production.
Secretary General of the Ministry of quality control.
It will be built in phases and should Energy and local authorities.
These trainings will be held in the
be operational during the year 2017.
The choice of locating the project new complex, at ALGESCO service
The share capital of this joint venture in Aïn Yagout, wilaya of Batna, is center in Boufarik (Algeria), at GE
company is 51% owned by Sonelgaz motivated by various considerations production and development in
and 49% by a subsidiary of General including, first, the geographic Belfort (France), or in other centers
Electric, GE Industrial France, with the location that allows access to around the world.
guarantee of GE USA. Both partners different parts of the country for the
This strategic partnership marks the
have completed in March 2014, in transport of heavy equipment by
beginning of the implementation of
Algiers, the signing of the statutes special vehicles; then, the proximity
the industrialization policy advocated
to airports/ports for import/export
of the new company responsible for
by the Group.
operations and the existence in
the implementation and operation
Batna, Setif and Constantine of When completed, the complex
of this industrial complex.
various industrial clusters; finally, will be the symbol of an effective
The mega-complex, the very first
the development of a department of national integration. On the other
industrial production project of gas mechanics in the University of Batna hand, this close partnership will
turbines in North Africa, is expected (i.e. access to skilled workforce). be profitable to Algeria with such
to produce by 2017 between six objectives as local manufacturing,
This project will aim at manufacturing
and ten gas turbines per year, or transfer of know-how, youth training
complex technology equipment, in
2,000 MW of electricity generation and job creation.
Algeria, to support the electricity
capacity per year.
generation development plan. It should contribute to the creation of
Stretching over 20 hectares, the Moreover, it will allow creating a over 1,000 jobs, including 400 direct
complex will include production structuring industrial activity able to jobs and more than 600 indirect jobs
lines for the four types of equipment help developing a national industrial in the local supply chain.
AAllggeerriiaann EEnneerrggyy MMaaggaazziinnee Algerian Energy Magazine 7
NNeewwss && eevveennttss News & events
Visit of Prime Minister to Oran
Inauguration of several industrial projects
Prime Minister Abdelmalek SELLAL conducted on November 11(cid:853) 2014(cid:853) a working and
inspection visit to Oran(cid:853) where he inaugurated several projects in the energy and industry
sector.
In the industrial area of
Arzew, the Prime Minister
inaugurated the «Sorfert-
Algeria» plant specialized
in the production of
fertilizers, ammonia and
urea. On this occasion,
Mr. SELLAL affirmed
that public authorities
encourage such projects,
declaring that «our main
goal is the transformation
of oil and gas to ensure an
added value.»
Covering an area of over
37 hectares, the «Sorfert-
Algeria» plant is a joint
venture created in 2007,
as part of the partnership
between Sonatrach group
owning 51% and the
Prime Minister accompanied by the Minister of Energy and senior officials at the «Sorfert» plant
industry and construction
company «Orascom»
El-Magtaa, located east of the This new industrial unit, located
owning 49%.
wilaya’s administrative center. in an area of 54 hectares including
It includes two ammonia production Following the explanations given 30 buildings, should contribute to
plants, with a capacity of 2,200 by the officials of the sector, the the development of the liquefied
tons/day and one urea production Prime Minister stressed the quality natural gas domestic production
plant of 3,450 tons/day. Production of water served to citizens. capacity.
is carried out through modern This plant, considered one of The plant has a production
techniques of water and natural gas the largest in the world using the capacity of 4.7 million metric tons
processing. Commissioning took process of reverse osmosis, has of LNG, 58,000 tons of butane,
place in August and September a production capacity of 500,000 275,000 tons of propane, 300,000
2013, respectively. They supply m3 of water per day; this quantity tons of ethane and 47,000 tons of
the domestic market in urea and is intended not only to meet the gasoline.
started exports in September 2013. needs of the wilaya of Oran but
This investment, made by
The plants also export ammonia also those of neighboring wilayas,
Sonatrach with its own funds at
since mid-October 2013. namely Mascara, Tiaret, Relizane
a cost of $ 4 billion (304 billion
and Mostaganem.
Visit to the desalination mega dinars), would create 645 direct
plant of El Magtaa A new LNG production unit in jobs and 250 indirect jobs. In the
Bethioua
context of the Prime Minister’s
The Prime Minister, Abdelmalek
SELLAL, also inspected during Subsequently, Mr. Abdelmalek visit, the loading of a 125,000
his visit to Oran, the seawater SELLAL inaugurated a new liquefied tons capacity methane tanker was
desalination mega plant of natural gas production unit. carried out.
8 AAllggeerriiaann EEnneerrggyy MMaaggaazziinnee Algerian Energy Magazine
NNeewwss && eevveennttss News & events
Promotion and Development of Clean fuels
Commissioning of the first
CNG filling station
The Minister of Energy, (liquefied
Mr. (cid:122)oucef (cid:122)ousfi(cid:853) inaugurated petroleum
gas) and CNG
the first Compressed Natural
(compressed
Gas service station (cid:894)for the
natural gas) as
general public(cid:895) at Sissane(cid:853)
fuels.
(cid:90)ouiba(cid:853) on November 25(cid:853)
In this context,
2014.
NAFTAL
During the press briefing conducted
launched
on site, the Minister congratulated
pilot projects
NAFTAL for the realization of this
targeting urban
new station. As regards CNG, he
areas through
said «this is a clean natural, greener
the installation
and cheaper product compared to
of two filling
other fuels.»
centers, the
Minister of Energy at the inauguration of the first compressed natural gas
He also stressed that this pilot plant first at the filling station (Open to Public)
was of «great importance», adding Sissane station
that «the use and spread of CNG in in Rouiba, the concern to provide the consumer
with the best quality/price ratio.
large cities contribute to the fight second at the Algiers International
against climate change and reduce Airport and a third filling station In this context, it has initiated two
pollution rate». under progress at the ETUSA ambitious development projects
vehicle stock. focusing primarily on LPG/Fuel, with
The head of the sector also said
an already operational network of
«this is a first step to be generalized It is to be noted that CNG is similar
over 600 service stations that will
in the capital and major cities
to gas distributed on the natural
be reinforced by the establishment
across the country such as Oran,
gas network, used for cooking,
of 658 other stations, 145 of which
Constantine, Annaba and Setif,
heating or industry, and that the
will be located at the border strip.
etc ...»
Sissane service station is supplied
This development program of LPG/
In order to induce people to install with gas directly from the existing
Fuel at the borders areas would
kits for the conversion of their natural gas network.
be an effective way to face fuel
vehicles, M YOUSFI encouraged
Finally, it is also worth recalling smuggling that continues to cause
the expansion of this practice,
the environmental benefits of considerable losses to the national
noting that «in terms of price, we
this product that effectively economy.
will study the possibility of having
contributes to the preservation
In addition to the LPG/Fuel,
an attractive price so to justify the
of the environment with -95% of
NAFTAL will develop CNG (Natural
cost of conversion for the user.
emitted particles; -40% of CO2; Gas as Fuel) in support of the LPG/
We are looking to take over half
-95% of Carbon Monoxide (CO); Fuel. CNG mainly involves public
the cost of conversion,» he added.
-30% of Nox; -80% of unburned transportation and trucks.
For his part, the CEO of NAFTAL, hydrocarbons (HC). Predominantly
With this in mind, and as a first
Mr. Said Akretche, affirmed that a commercial enterprise, NAFTAL is
step, NAFTAL, in consultation with
the company took several actions also a socially responsible company
the concerned public companies
to promote the use of cleaner fuels which actively participates in the
(like ETUSA and Sonelgaz) decided
and reduce diesel consumption in promotion and development of
a development program to extend
the transport sector. These actions clean products that protect the
this product use of to all partner
include the development of LPG environment with a constant companies transport means.
AAllggeerriiaann EEnneerrggyy MMaaggaazziinnee Algerian Energy Magazine 9
NNeewwss && eevveennttss News & events
Project of Ahnet
First drillings yield their results
The Project of Ahnet is
located in the central part
of the Ahnet basin. The
main purpose of the project
was the evaluation of the
di(cid:299)erent source rocks
potential and to assess their
dynamic performance after
a process of stimulation and
production.
This purpose was to meet a set
of major challenges, namely the
optimization of drilling at the
operational level, duration and
cost, reducing water consumption,
pollution risk control and reducing
visual and noise pollution on
operation sites.
The flame of the first project Ahnet
This project was actually
prepared during the second half acquisition of specific data on This sealing is ensured in particular
of 2012 through the successive the potential of the Frasnian and by cementing annular spaces
implementation of two vertical Silurian. between the rock and the casing
wells AHT-1 and AHT-2 for the that constitute the architecture of
Following the interpretation and
the well. The quality of cementing
analysis of data acquired in these
and type of different casings,
two wells, Frasnian clays showed
forming this «water resistive
real potential ranking them among
barrier», respond to mechanical
the best known in the world.
composition and properties, able
The AHT-1 well targeting the upper to withstand extreme conditions of
part of the Frasnian gave very temperature or pressure.
positive results in terms of the
A logging control is performed after
reservoir performance and initial
each cementing operation.
production.
The choice of the drill region and
Based on these encouraging
site of these wells is the result of a
results, the project was launched.
geoscience study conducted across
It provided for the drilling of two
the basin, which helped identifying
wells with horizontal drains.
several prospects.
As in all conventional oil wells, the
Prospect 2 showed that the
drilling design of these two wells
Frasnian in this region had great
with horizontal drains took into
potential. The drilling of the first
consideration the sealing of wells
well, AHT-1-H1 in horizontal drain
in a very rigorous way to protect
has reached the final depth of
crossed groundwater from any
2,988 m.
contamination.
«PT 214» drilling rig
10 AAllggeerriiaann EEnneerrggyy MMaaggaazziinnee Algerian Energy Magazine