Algeria’s Energy Minister, Mohammed Arkab has announced a new gas discovery in the southwest province of Tindouf. This new discovery is expected to help the country boost exports and maintain its market share abroad.
According to Reuters, Algeria is a major gas supplier to Europe but rising domestic consumption and a failure to increase production in recent years have threatened its export volumes.
The minister said while visiting the new field that “this field has positive indications. It has the capacity to produce some 275 cubic meters of gas and nearly 300 liters of condensate per hour”. He added that the discovery of gas for the first time in the province was a great representation of a new phase for the economy.
Also, the minister did not state when production would start in the new field but however mentioned that the state energy firm, Sonatrach would make further evaluations of the field’s capacity.
Apparently, the country which produces about 135 billion cubic meters 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.
Meanwhile, Algeria’s economy relies heavily on gas and crude oil, and the government has drafted a new energy law offering incentives to investors in a bid to attract foreign firms as many foreign investors have stayed away due to unattractive contract terms and bureaucracy.