Energy sector:
Algeria is a country rich in hydrocarbons. Its mining area which extends on 1 488 717 Km² remains largely under-exploited. Its reserves proven (out of hydrocarbons) about 45 billion Barrels in oil equivalent and its geographical position confers a role to him determining in the energy provisioning of the European Union. After gas, the electricity produced in Algeria within the framework of Mega Projet of exchange electric of power of 2000 MW will supply soon the European hearths.
a) Hydrocarbons:
4 great areas
- East of the Sahara has known oil layers and gas, and still conceals a good potential of discoveries;
- The Center of the Sahara is considered to have a potential production of gas (layers of variable importance) but where recent discovered oil allow to hope for other developments;
- The West of the Sahara is especially considered as gas, but its resources remain practically unknown;
- In the North of Algeria, in spite of discoveries of oil and gas of small size, the oil potential was not yet reveals because of a complex geology.
National Company Algerian SONATRACH has the monopoly in the fields of hydrocarbon. However it has the possibility of joining foreign companies within the framework of contracts or joint-ventures for the control of its activities.
Algeria, obtaining significant infrastructures and having the consequent reserves estimated at a minimum of 45 billion barrels oil equivalent, occupies the third rank among the oil-producing countries and the 12th world rank .
- The hydrocarbon reserves discovered in Algeria to date are contained in a little more than 200 gas and oil reservoirs
- 73 are located in the basin of Illizi
- 57 in the basins of the central Sahara
- 34 in the basins of Ghadames-Rhoude Nouss
- 31 in the basin of Mya Wadi
- On the initial reserves in place proven of approximately 10 billion cubic meters of liquid hydrocarbons, only 25 % of them are considered recoverable with the current processes of exploitation. Half of these recoverable crude oil reserves was already produced.
The refining of oil occupies a dominating place in the industrial sector. A dense network of distribution of fuel, gas and of electricity covers the whole of the own territory. Two gas pipelines connect the Sahara to Europe while crossing the Mediterranean Sea, between Tunisia and Italy for one, Morocco and Spain for the other.
The grid system of SONATRACH is evaluated with a little more than 13 000 km, distributed of 14 pipelines and 11 gas pipelines respectively adding up 5773 km and 7419 km. The transport capacity of the network of drain of SONATRACH in the north of Africa is about 101.32 billion cubic meter gas, of 12.52 million LPG and 79.44 million tons of crude and of condensing.
b) Mines
Under Algerian ground is rich in ores of all kinds: iron, phosphates, zinc, uranium, tungsten, coal, manganese, lead, mercury, baryta, salt… To the layers were added gold, wolfram, tin, the money, the invaluable stones. More than one about thirty ores are listed. But the mining sector, which manages 32 sites, 26 careers and 8 treatment plants, represents less than 1 % of the GDP (Gross Domestic Product) of the country. The year 2002 saw the acceleration of the institutional reforms to adapt the sector of the mines to the new economic requirements and to set up more daring formulas of opening at the partnership.
The sector offers a number of assets: a potential of 2.4 million Km², a varied geology, an inciting tax framework, qualified engineers and technicians, a network of drains and infrastructures harbour.
The national mining sector is composed of a public sector and a private sector. Administration charged with the mines having for mission the development of the general policies, the program of the State and the monitoring of the mining area and mining para. Algeria adopted on July 03rd, 2001 a new mining law which encourages the investment of the main roads and foreign in this sector of the economy. This law marks a significant stage in the process of liberalization of the economy and testifies to the real will discovered with the foreign investments.
c) electricity:
SONELGAZ has an output of a power of 6000 MW. A mega project of 2000 MW of which 1200 MW intended for export towards Europe is in the course of concretization in partnership between SONATRACH, SONELGAZ and a consortium of especially European international firms. To consolidate this project, two agreements were concluded with Spain and Italy to undertake the feasibility studies by the realization of the direct electric interconnections with in prospects a second project for 1000 MW which will connect Algeria to Sardinia. SONELGAZ has an investment plan of 10 billion dollars US to realize for the doubling of the working installed capacity.
The production of electricity increased by 40 % in 10 years. The near total of the Algerian territory is electrified. It was developed, for the needs for electrification, more than 36 local public companies and a national company. More than 4.5 million households are subscribed with the electrical supply network of SONELGAZ. The consumption of electricity high voltage increased in one decade respectively of 24 % and 29 %.
The total investments for the period of 2000-2010 are estimated at height of 10 billion dollars US of which 48 % will be assured by private financings whereas the budgetary equipments do not exceed 11 %.
The liberalization of the sector of electric industry in Europe incontestably offers opportunities to Algeria to pass from exporting country of the primary energy to that of exporter of final energy (electric generated gas)
d) Other energies (renewable):
- Wind power:
Algeria has a mode of moderate wind (2 to 6 m/s). This natural energy is appropriate perfectly for the pumping of water, particularly on the high plateaus.
- Geothermal energy:
More than 200 sources are indexed in the northern part of Algeria from which 33 % have temperatures higher than 45° C. Biskra has sources at high temperatures being able to reach 118° C.
- Hydroelectricity:
The total quantities of rains in Algeria are important and are considered significant at 65 billion m3 but benefit little the country because of the reduced number of days of precipitation concentrated on limited spaces, which involves a strong evaporation and a fast evacuation towards the sea. Schematically, the resources of surface decrease from the North to the South. One evaluates the resources useful and renewable to approximately 25 billion m3 including nearly 2/3 for the resources surfaces. Currently 103 sites of dams are listed and more than 50 are in exploitation.
- Biomass:
The potential of the forest is evaluated to approximately 37 million Mtoe (Tons oil equivalent) with a recoverable potential of about 10 %. the natural energy of urban and agricultural waste: 5 million tons are not recycled. This potential represents a layer of about 1.33 million Toe/an.
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