27 th –28 th march 2003 rome energy meeting ali hached executive vice president, sonatrach rome...
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27th –28th March 2003Rome energy Meeting
Ali HachedExecutive Vice President, Sonatrach
Rome Energy Meeting
Rome, 27th –28th March 2003
SONATRACH INTERNATIONAL DEVELOPMENT
NATURAL GAS PROJECTS
27th –28th March 2003Rome energy Meeting
A NEW A NEW NATURAL NATURAL GAS EXPORTS TARGETGAS EXPORTS TARGET
Sonatrach has set a new gas exports target of 85 Bcm/year by
2010, taking into account :
- The renewal and increase of its gas reserves
- The emergence of market opportunities as a result of a strong
growth rate (World : 3.2%/year, Europe : 1.9%/year).
- The strengthening of our activities abroad and the
diversification of our portfolio
27th –28th March 2003Rome energy Meeting
A NEW A NEW NATURAL NATURAL GAS EXPORTS TARGETGAS EXPORTS TARGET
According to SONATRACH medium term Business Plan, NG and LNG exports will respectively reach an annual growth rate
of 4,8% and 4,4% during 2003-2007
1988-1992 1993-1997 1998-2002 2003-2007Crude Oil 6,3% 2,1% 3,5% 12,3%Condensate 0,3% -1,5% -2,2% 4,2%LPG -0,6% 9,1% 6,5% 7,1%NG 9,2% 12,9% 3,5% 4,8%LNG 7,0% 4,8% 2,5% 4,4%
Total 5,8% 4,4% 2,1% 5,9%
Annual growth rates of our exports 2003-2007
27th –28th March 2003Rome energy Meeting
Strengthening its presence on the entry points to Europe
Extension of existing export gas pipeline capacity (Pedro Duran Farell, Enrico Matteï)
New direct gas pipelines (Medgaz, Galsi)
New regasification terminals (Reganosa, others in discussion)
Downstream Integration
Direct investments in power plants (Cogeneration, CCGT)
Joint marketing companies
Increasing shipping capacity
Two 140 000 cm-class ships and one 70 000 cm-class ship to
reach a total shipping capacity of more than 1 billion cm.
SONATRACH NATURAL GAS STRATEGY
27th –28th March 2003Rome energy Meeting
24 Bcm32 Bcm
MATTEI
8.5 Bcm8.5 Bcm
FARREL
11.5 Bcm
+ 8 Bcm (2006)
+ 3 Bcm (2004)
EXPANSION OF THE EXISTING PIPELINES CAPACITY
Enrico Mattei (Former Transmed)
Pedro Duran Farell (Former GME)
27th –28th March 2003Rome energy Meeting
MEDGAZ
Direct line Algeria–Europe via Spain
(8-10 Bcm/year, starting 2006)
Partners : Sonatrach, Cepsa,BP, Endesa, Eni, GDF,TotalFinaElf
NEW NATURAL GAS EXPORTS PIPELINES
Beni Saf
Hassi R’mel
MOROCCO
ALGERIA
SPAIN
C.d.Pescaia
Olbia
El KalaEl Kala
Hassi R'mel
GALSI
Direct line Algeria–Italy via Sardinia
(8 Bcm/year, starting 2008)Partners : Sonatrach, Edison, Enelpower, Wintershall, EOS Energia
27th –28th March 2003Rome energy Meeting
Location : Mugardos
Capacity : 2.5 to 5 Bcm/y
Partners : Endesa, Union
Fenosa, Tojeiro Group, Xunta
de Galicia, Caixa de Galicia,
Caixa Vigo, Banco Pastor
Operating Company :
REGANOSA
REGASIFICATION TERMINAL - REGANOSA
27th –28th March 2003Rome energy Meeting
SONATRACH IN THE GAS DOWNSTREAM
Participation in cogeneration units (Spain, Italy)
Participation in CCGT plants (Spain, Italy…)
Tolling (Italy, Spain,…)
Export of power produced in Algeria (Italy, Spain,…)
27th –28th March 2003Rome energy Meeting
TOWARDS A GLOBAL LNG MARKET
Costs reduction enables the development of new
LNG projects
Arbitrage opportunities for both buyer and seller
Cooperation among suppliers (GECF)
27th –28th March 2003Rome energy Meeting
France
Belgium
USA
Turkey
Spain
Slovenia
Italy
Portugal
Greece
AlgeriaAlgeria
2%89% 67%
21%
40%
35%
23%
25%
Algerian natural gas share in gas imports
24%
TunisiaTunisia
100%
LNG44%
Pipe 56%
SONATRACH : A MAJOR NATURAL GAS SUPPLIER
Natural gas exports : 60 Bcm
27th –28th March 2003Rome energy Meeting
27th –28th March 2003Rome energy Meeting
A NEW LEGAL FRAMEWORK IN EUROPE
Create disruption risks and
weakens the supply chain
Create risks on gas
projects financing
Delay new projects /
create additional costs
Create Instability and
uncertainties for both
producers and clients
Affect the equilibrium of
long term contracts
EU wishes to set up a single and open gas market may :