Emirates 24/7:Algeria warned of gas shortage

Algeria needs to take measures to tackle a possible gas supply shortage due to strong demand and the absence of new gas discoveries, according to an official study.

Concerns over depletion of natural gas reserves have begun to be felt in Algeria, with policy makers scrambling to address them, said the study by the Saudi-based Arab Petroleum Investment Corporation (Apicorp).

The study, sent to Emirates 24/7, noted that the February 2013 revision of the Algerian hydrocarbon law has introduced significant and most needed changes.

The first offers new incentives to revive exploration and development and attract interest in unconventional gas while the second prioritizes the principle of “domestic market obligation” and commits to remunerate the state-run Sonatrach’s foreign partners on an export‐based opportunity cost, should their share of gas be requested.  MORE