Algeria will increase its LNG production capacity

Commissioning in the coming months of the new LNG trains in the Skikda and Arzew complex should raise Algerian production to 60 million m3, according to official sources.. Sonatrach, is  a pioneer in the LNG industr and, has three LNG complexes that produce between 42 and 44 million m3 of liquefied gas per year. The two new trains created at Arzew and Skikda will be the two main platforms for processing hydrocarbons in Algeria.

 The Skikda LNG train is completed, and is now in the testing phase the Algeria daily Liberte reports. Moreover, one of the two units will probably be inaugurated on February 24, to commemorate the nationalisation of Algeria's hydrocarbons sector. Sonatrach also plans to rehabilitate its three LNG complexes activity to meet its  long term supply commitments  With these new improved units, Algeria will have  a better capacity  for LNG production surplus .Sonatrach's CEO Abdelhamid Zerguine pointed out in August that demand for LNG was very strong particularly in Asia.

The global LNG market has experienced strong competition in 2011 with the setting up of new supply routes from Qatar and Australia to Japan, world's largest consumer of liquefied gas. Despite this competition, Sonatrach has maintained its market for LNG.

 Whilst Sonatrach has not  entered into long-term contracts despite good LNG cargoes it has succeeded in supplying the market with very attractive prices. The market will remain strongly influenced by China's gas consumption, asChina continues to use its large coal deposits,according to an expert.

Asian buyers of LNG are likely to be spoiled for choice from 2015 onwards as a surge in Australian production coincides with the first planned exports from the United States and Papua New Guinea, and new supplies from Africa, the Middle East and possibly Russia,according to an article in the Australian newspaper.

That could mean better pricing options for big gas customers such as the Japanese and South Korean energy utilities, who have had to pay spot rates as high as $US20 per million metric British thermal units (mmbtu) in the wake of the 2011 Fukushima nuclear power plant disaster.