mercredi 16 octobre 2019 13:30:54

Sonatrach to renew its Long Term Gas contracts soon

The National Hydrocarbon Company (Sonatrach) will soon announce the renewal of its long-term gas contracts with certain countries, after having renewed, in 2018, the contracts with four European countries, said its CEO, Rachid Hachichi.

PUBLISHED : 21-09-2019 | 0:00
D.R

The National Hydrocarbon Company (Sonatrach) will soon announce the renewal of its long-term gas contracts with certain countries, after having renewed, in 2018, the contracts with four European countries, said its CEO, Rachid Hachichi.

When asked about the possible impact of the pricing model applied in these contracts on the country's flexibility in relation to its customers, Mr Hachichi stressed that Algeria offered a "balanced" package of services and that pricing was only one element among many others.  

"As you know, a gas contract is not only about price. It is a set of parameters, such as long-term security of supply, seasonal flexibility, short-term flexibility and the level of payment that all our customers appreciate,"

The pricing offered by Hub pricing centres "does not offer this package of services", he argued."We therefore believe that Sonatrach continues to offer a balanced package of services in its long-term gas contracts, with pricing being only one element," Mr. Hachichi said.

Asked about the prospects for increasing Algerian LNG exports in the coming years, he recalled that Sonatrach's position in the LNG market "today gives it a competitive advantage in terms of flexibility in its natural market, namely Europe, and allows it to develop its gas in distant markets offering arbitrage opportunities".

Our current LNG production capacity, totaling nearly 100 billion m³, "can support our production volumes while offering us a valuable tool to secure our deliveries and make our gas more profitable", he assured.

When asked how Sonatrach would be able to balance the growing domestic demand for energy while maintaining or even increasing its export volumes, the company's chief executive indicated that several steps are being taken to achieve this dual objective.

To strengthen its gas exports, Algeria is focusing on developing energy trade, increasing the capacity of export infrastructure, such as the Medgaz gas pipeline to Spain, and building a new LNG jetty in Skikda.

To meet growing national demand, the country is focusing on increasing the number of fields and optimizing the use of existing fields, he said.

The increase in new discoveries in the field," continues Mr. Hachichi, "is part of improving the performance of the exploration strategy and should lead to an increase in the number and volume of discoveries.

Better mobilization of reserves and improved performance in terms of drilling, wells and volumes are, he continued, and the other actions undertaken by Algeria to meet internal energy consumption.

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