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  • Writer's pictureAccounts INVR

In Amenas Gas Project: the largest wet gas development project in Algeria

It is well-known that Algeria is Africa’s leading natural gas producer, producing more than more than 94,778 million cubic m mn annually, with many high performing and state-of-the-art upstream facilities, exporting more than 25 bcm to its partners, including the EU, becoming its most reliable supplier. The country possesses the largest gas reserves in the continent, having discovered more than 4,504 billion cubic meters of proven gas reserves even with only one-third of the country adequately explored.

However, experience has shown that having significant reserves is not the only key factor for a successful oil & gas industry.

What are the key factors for a country’s oil & gas success?Location, infrastructure, and an industrial mindset.

Algeria is located in the Mediterranean, and has formed excellent relations with its neighbours, allowing it to reliably supply Europe with gas through the Trans-Mediterranean Pipeline and the Maghreb-Europe gas pipeline, originating from Hassi R’Mei, thanks to its excellent infrastructure.

Where Algeria really shines, is the industrial mindset that allows them to take a prospect and maximise profits for the country. Nowhere other does that shine brighter than in Sonatrach’s success with the In Amenas Gas Project.

The In Amenas Gas Project: Sonatrach’s beaming success

The In Amenas Gas Project is the largest wet gas development project in Algeria, producing 9 bn cubic meter per year and 50,000 barrels of condensate per year. It is a beacon of international cooperation, being the product of the very successful joint venture between Sonatrach, BP and Statoil. In recent years, the joint venture invested in further developing the In Tiguentourine gas field, upgrading its facilities, and production to 8.8 billion cubic metres of gas per year. Meet Mr Abdelmoumen Ould Kaddour, CEO of Sonatrach,at the Algeria Oil & Gas Summit.

The project has four primary gas fields with more than 85 bil sq me of gas, located at the Illizi Basin, and connected to a gas processing facility. The four fields in production are Tiguentourin, Hassi Ouan Abecheu, Hassi Ouan Taredert and Hassi Farida, covering an area of 2750 sq km.

The development of the In Amenas Gas Project

Development started in 1998, when Sonatrach partnered with Amoco Corp to produce gas from the four fields. BP recognised the massive potential of this opportunity and bought Amoco’s part within the same year, signing a production-sharing contract with Sonatrach. Five years later, BP partnered with Statoil to increase the scope of the operation. The first field to be developed was Tiguentourine, with a $1.2bn investment for the drilling of 12 development wells. More than $800 mil were invested for the construction of production and processing facilities, including the highly efficient In Amenas processing plant.

The plant has the capacity to process more than 28 million sq me of gas daily, and is connected to the Ohanet Sonatrach gas distribution system.

Sonatrach BP and Equinor expand the In Amenas Gas Project

In 2011, Sonatrach, BP and Statoil elected to expand the In Amenas gas by awarding the Japanese Gas Corporation a $213 contract, to build a compression project and update the plant. This project was highly successful, with In Amenas maintaining its main production capacity of 30 million sq me per day for 8 years, with the capacity to do so for the projected future. This upgrade was further enhanced by Petrofac’s thorough consultation aiming to further boost production.

Algeria’s foresight to invest in the right projects consistently and reliably is evident in the continuing success of the In Amenas gas project, and the several upgrades Sonatrach’s projects undergo in years.

Sonatrach’s success in this production sharing contract highlights its excellent relations with its partners, who are viewed as equals and receive many benefits.

The In Amenas Gas Project shows the numerous opportunities for service providers and consultancy services that Algeria offers, as Sonatrach and ALNAFT are not afraid to invest in highly competent SPs, new technologies and ideas. Meet Sonatrach and ALNAFT and expand your business in Algeria at the official Algeria Oil & Gas Summit on 17-19 June 2019.

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