Algerian gas exports are expected to decrease by 4.7% in 2020

Algerian gas exports are expected to decrease by 4.7% in 2020

Algeria: «Asharq Al-Awsat»

Algerian Energy Minister Abdelmadjid Attar said that Algerian gas exports are expected to decline by 4.7 percent this year, due to declining demand from Europe and competition from cheaper US supplies.
He added, according to «Reuters», that exports from Algeria, which contribute to oil and gas sales by 95 percent of its income, are expected to reach about 41 billion cubic meters of gas this year, down from 43 billion cubic meters in 2019.
Oil and gas revenues reached $ 33 billion in 2019, and is expected to record $ 23 billion this year.
Attar said that the total gas production will reach 126 billion cubic meters, compared to 127 billion cubic meters in 2019. Production was affected by aging fields and lack of investment, while domestic consumption grew 5.3 percent annually since 2009 to reach 46 billion cubic meters last year.
Last year, Algeria enacted an energy law aimed at enhancing the investment attractiveness of the oil and gas sectors, but it has not yet published its executive regulations necessary to guide them when making investment decisions.
Algeria’s revenues from oil and gas exports decreased by 41 percent, to $ 14.6 billion, in the first nine months of this year, compared to $ 25 billion in the same period in 2019.
The minister attributed this significant decrease to a 14 percent decrease in the volume of exports. On the one hand, along with the deterioration of oil prices; On the other hand, it reached 41 dollars a barrel at the end of last September, compared to 65 dollars in the same period in 2019, a difference of 24 dollars a barrel.
The minister said that despite the semi-stability that has appeared on oil prices in recent months, due to the efforts of the producing countries within the “OPEC +” group, producers do not hide their fear of a strong second wave of the Corona epidemic, which may lead to a slowdown in growth, and then a slowdown. The demand for oil is more than expected (9 million barrels per day).
Energy consumption in Algeria decreased, during the first 9 months of this year, by 6 percent on an annual basis, due to the repercussions of the Corona pandemic on economic activities. Fuel production also decreased by about 10 percent between January and September, compared to the same period in 2019, to reach 103 million tons of oil equivalent.
Electricity production also decreased by 4 percent, to 50,420 gigawatt hours, by the end of last August, compared to production in the same period last year.
Abdul Majeed Attar had expected a huge decline in oil and gas export revenues, at the end of this year, by about $ 10.5 billion, due to the repercussions of the Corona virus pandemic, and the resulting decline in fuel demand. In statements on October 26, the minister said: “It is expected that hydrocarbon exports will reach about 23.5 billion dollars if the price of a barrel of oil stabilizes in the range of 40 dollars, compared to 34 billion dollars. Exports in 2019 ».

Economy