Algeria, primary exporter of LNG to Europe and U.S., is all set to increase its production capacity by 2011 and meet growing demand of LNG importing nations.
Algeria is set to increase its production capacity of LNG (Liquefied natural gas) by 2011 to become chief exporter. It is already a major supplier of LNG to United States and Europe, as told by the Energy Minister Chakib Khelil to state radio on April 29, 2007, as per the news published on AlarabOnline.
He added that Algeria is scheduling to further its LNG production facility by undergoing two agreements with Gas Natural companies and Repsol for generating a sum total of 9 million tons of LNG annually in four years.
"We have two big ongoing projects. One with Repsol and Gas Natural to produce 4.5 million tonnes of LNG per year and the second project in Skikda will produce another 4.5 million tonnes of LNG per year, and should come onstream by 2011," Khelil said in news published on GulfNews
Minister specified that Sonatrach, which is Africa's leading company in terns of revenues and Algeria's state gas and oil-company, produces 62 BCM (Billion Cubic Meter) of LNG annually and output is anticipated to touch 85 BCM by 2010.
Algeria has considerable economic upsurge due to robust oil and natural gas export revenues. Real gross domestic product (GDP) growth is projected to be 6.4 percent in 2006, subsequent growth of 5.2 percent in 2005. Hiked revenue from oil export has lead to country's foreign treasury to accumulate easily.
By means of ample reserves and geographical nearness, Algeria is major gas exporters to Europe via pipeline and a chief and revolutionary LNG provider to Atlantic Basin. Algeria also meets 15 percent of U.S.’ LNG requirements that is 1.5 million tons. Alternatively, the country has witnessed speedy economic growth for the last few years, and prospective for growth to prolong and still augment further are going to elevate gas export of Algeria considerably.
According to research analyst at RNCOS, “Using its favorable geographical location and enormous gas reserves, Algeria is all set to achieve its goal of augmenting its production capacity to exploit growing demand of LNG in export markets”.
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