22 nd world lp gas forum, rio de janeiro - brazil 7 th – 9 th october 2009 algeria : a leading lp...
TRANSCRIPT
22nd World LP Gas Forum, Rio de Janeiro - Brazil
7th – 9th October 2009
ALGERIA : A LEADING LP GAS EXPORTER AND CONSUMER
Said Akretche , Chairman and Managing Director of NAFTAL - Algeria
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1. Introduction
Algeria is a leading LPG producing country.
In 2008, Algerian exports reached 7.5 million tons and domestic consumption exceeded 1.95 million tons.
However, the on going policy proping up natural gas consumption has hampered the growth of LPG in particular bottled butane, a product that remains the vital source of energy in rural areas.
Nevetherless, opportunities for development of the domestic market of LPG (bulk butane, bulk propane, small public distribution network of LPG and LPG auto gas) exist and can be a valuable alternative.
Thanks to abundant resources and because of their properties, LPG can play a greater role in meeting energy needs in transportation, industrial and agro business sectors in the future.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
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The consumption energy model : Rank of LPG
2. Place of LPG in the Algerian energy policy
Strategic optionsConventional fuels substitution by
Widespread use of LPG Fuel
The Algerian energy
consumption model
Promotion of use of the most available energy forms
Energy efficiency
Tariff policy
Environment protection
Natural gas & LPGRenewable and solar
energies promotion Act
Saving Energy Act (1999)Energy Auditing (déc 05-495)
The SavingEnergy NationalPlan The saving Energy National FundIntergouvernement Commetee
for Saving Energy
Environment Act
New fuels pricing structure New tariffs on Electric power & gas
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
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3. Exports of LPG
Algerian LPG development strategy is based on :
The strengthening of its leadership on the European market in general and the Mediterranean market in particular;
The increase of its shipping capacity;
Downstream integration; Investment in terminals & storage capacity ;
Arbitrage opportunities.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
Million tons
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4. LPG meeting energy needs in Algeria
Product Uses
Propane
Industrial sector ( bulk propane and bottled propane, petrochemicals, power, generation, fuel for agro business and small industries ….)Domestic sector (collective propane for small isolated agglomeration, small tank, bottled propane…)
Commercial butane
Industrial sector (bulk butane, fuel for clean industries, etc.) Residential and commercial sector (bottled butane)
LPG auto gas transportation
Large specter of uses…
In 2008, LPG consumption in Algeria represented 7 % of the total final energy consumption.
In 2008, LPG consumption in Algeria represented 7 % of the total final energy consumption.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
…Consumption
LPG in the Algerian energy chain
4. LPG meeting energy needs in Algeria
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
LPG is produced in oil and gas fields, located in the southern region of Sahara.
It is transported by a an extended pipelines network to separation plants in Arzew.
LPG is also produced by oil refineries and LNG plants.
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SourcePropane
ProductionButane
ProductionTotal
Treatment units GP1Z and GP2Z
4.50 4.05 8.55
Oil refineries 0.08 0.49 0.57
LNG plants 0.65 0.29 0.94
Separation units (in oil and gas fields)
0.095 0.20 0.295
Total 5 .325 5.03 10.355
LPG production in Algeria (2008)
Production of LPG in gas fields
Production of GPL in oil fields
Treatment units (GP1Z and GP2Z)
LNG plants Oil refineries
Propane and Butane
Export
Domestic market
Bulk Propane and Bottling Propane
Bulk Butane and Bottling Butane
LPG/F
Separation units (in oil and
gas fields)
LPG supplies
4. LPG in meeting energy needs in Algeria
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
Million tons
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Fuels
Aviation
Fuels
Marine Fuels
LubricantsBitu
men
Tyres
Training
LPG
5. LPG Market in Algeria NAFTAL : the leading LPG distributor in Algeria (1)
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
NAFTAL is an Algerian company for distribution of petroleum product and LPG.
NAFTAL is 100% subsidiary of SONATRACH GROUP.
Naftal missionsSales of petroleum products and LPGDevelopment of distribution infrastructures and complying with the environment and safety energy policyTraining in petroleum products distribution business
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NAFTAL : the leading LPG distributor in Algeria (2)
49 fuels storage facilities; 03 LPG bulk storage facilities; 42 LPG bottling plants; 47 bottled LPG storage outlets; 26 aviation fuels storage facilities 06 marine fuels storage facilities 27 lubricants and tyres warehouses 15 bitumen units
910 km of transmission pipeline (180 km under construction)
3 000 vehicles (heavy duty trucks and tankers)
Storage
Transportation
Distribution network 1 940 service stations
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
Organization
5. LPG Market in Algeria
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Butane : Consumption
The Algerian butane consumption rose from 1 million tons in 1990 to 1.5 million tons in 2008.
During this period, the annual average growth rate had been 2.4%. This low growth was due mainly to rural exodus and natural gas grid expansion.
In 2008, butane represented 75 % of total LPG sales.
The Algerian butane consumption rose from 1 million tons in 1990 to 1.5 million tons in 2008.
During this period, the annual average growth rate had been 2.4%. This low growth was due mainly to rural exodus and natural gas grid expansion.
In 2008, butane represented 75 % of total LPG sales.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
1000 tons
5. LPG Market in Algeria
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Propane consumption rose from 48 000 tons in 1990 to 166 000 tons in 2008
The annual average growth on this period had been 7.6 %
The growth in demand is mainly bolstered by the industrial sector.
Sales of bottled propane stabilized in the 1990s. Before 2004, sales maintained the same growth at a rate of 0.5 % a year.
During the last ten years, the LPG fuel average consumption growth rose by 10 % per year
The share of LPG fuel in the total consumption of fuels is small (4 % in 2008).
Propane consumption rose from 48 000 tons in 1990 to 166 000 tons in 2008
The annual average growth on this period had been 7.6 %
The growth in demand is mainly bolstered by the industrial sector.
Sales of bottled propane stabilized in the 1990s. Before 2004, sales maintained the same growth at a rate of 0.5 % a year.
During the last ten years, the LPG fuel average consumption growth rose by 10 % per year
The share of LPG fuel in the total consumption of fuels is small (4 % in 2008).
Propane & autogas : Consumption
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
1000 tons
5. LPG Market in Algeria
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Centres emplisseurs GPL
Bottling plants Naftal (42)
Bottling Plants on project (30)Bottling Plants Other Operators(15)
Tiaret
Tlemcen
Oran
SaidaSBA
Mascara
ChlefTipasa
Relizane
A.Defla
Alger Boumerdes
T.Ouzou
Bouira
Médea
Blida
M’Sila
BBA
JijelBéjaia
Sétif
AnnabaEl Taref
Skikda
Mila
Guelma
S.Ahres
OEB
Batna
Khenchela
Tebessa
Biskra
Laghouat
El Oued
El Bayabh
Djelfa
Naama
Ghardaia Ouargla
AdrarTindouf
Constantine
Tissemsilt
Mostaghanem
A.Timouchent
Tamanrasset
Djanet
H. R’mel
HMD
RA1.KRA1.KRA1.GRA1.G
GP1.ZGP1.Z
GP2.ZGP2.Z
5. LPG Market in Algeria (LPG bottling plants)
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LPG demand
Shrinking of demand for bottled butane .
Expansion of LPG consumption will be carried by propane development and LPG fuel promotion.
Shrinking of demand for bottled butane .
Expansion of LPG consumption will be carried by propane development and LPG fuel promotion.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
5. LPG Market in Algeria
1 000 tons
Bottled
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Sonelgaz, the public company for power generation and natural gas distribution is the main competitor for LPG distributors;
Between 2004 and 2008 : the natural gas distribution network increased by 4000 km to a total length of 27 000 km;
2008 : natural gas grid expansion reached 30% of households. The expansion of natural gas affected negativelly the sales of LPG; especially bottled butane.
Sonelgaz had an ambitious program for the 2004-2009 time span of connecting many villages and towns to its natural gas grid;
2012 : Sonelgaz objective is to reach up to 50 % of households.
Sonelgaz, the public company for power generation and natural gas distribution is the main competitor for LPG distributors;
Between 2004 and 2008 : the natural gas distribution network increased by 4000 km to a total length of 27 000 km;
2008 : natural gas grid expansion reached 30% of households. The expansion of natural gas affected negativelly the sales of LPG; especially bottled butane.
Sonelgaz had an ambitious program for the 2004-2009 time span of connecting many villages and towns to its natural gas grid;
2012 : Sonelgaz objective is to reach up to 50 % of households.
6. natural gas grid expansion
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
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• Electric facility
• Natural gas plant
6. natural gas grid expansionSonelgaz natural gas grid : 27 000 km
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7. market deregulation
Results of 1997-435 Decree :
Emergence of 15 private operators in bottling and LPG sales. Distribution operations improvements ; better services to the customer.
With some difficulties :
Cross filling; Safety issues; Marketing unfair practices.
New legislation (2005-07 law and 08-289 & 08-290 decrees ) :
Unbundling ;Open access with creation of the Storage Infrastructures Manager ; Supervision by the Regulation Hydrocarbons Authority (ARH).
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7. Impacts of the market deregulation LPG Market after the 2005-07 law and 08-289 & 08-290 decrees
Retail prices
Oil refineries
LNG plants
Service-stations
Sales points
Bottling plants
Wholesale customers
Input prices Wholesale prices
Storage Infrastructures Manager (Gestionnaire des Infrastructures de
Stockage - GIS)
Post stamp rates for logistics
Providers Storage Infrastructures Manager
Distributors
Field treatment units (GP1Z and GP2Z)
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
Wholesale distribution
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8. CONCLUSION
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
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Thank you
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009