THE AIN TSILA GAS FIELD – A SAVIOUR FOR ALGERIA’S AILING ENERGY SECTOR
At last there is hope for Algeria’s ailing energy sector. The Ain Tsila gas field which has long been recognised by analysts as one of the prime remaining energy assets in North Africa is finally being developed. Just under a year ago the EPC contract was awarded to Petrofac by the partners in the project – Sonatrach, Petroceltic International and ENEL. Progress to date has been ahead of schedule and all the key milestones have been met. As a result first gas is scheduled for 2022.
Algeria’s energy sector is vital to the economy of the country. Yet in recent years its performance has been poor. As a result vital revenues, that are needed for the provision of basic services and meeting the needs of the people, have been in decline. The figures for the first 11 months of 2019 tell their own story with energy earnings dropping by around 15% with the loss of $30.25 billion in foreign earnings. Such a reduction has major implications for the Algerian economy which is heavily dependent on the oil and gas sector – it provided 40% of the budget in 2018. The under performance of the energy sector has also had a direct impact on foreign exchange reserves which fell from $85.9 billion in August 2018 to $65.4 billion in July 2019.
In this situation the development of new energy assets has to be a top priority. The Ain Tsila gas field is one of the most significant gas fields to be developed over the coming years, not just in Algeria but throughout the whole of North Africa. It has gas in place nearing 20 TCF and will export gas, condensate and LPG’s from this world class resource beginning in 2022. The project will also bring major financial benefits to the Algerian economy by generating $50 bn of government revenues over the next 20 years.
The Ain Tsila project has the potential to bring a real boost to the ailing Algerian energy sector. Petroceltic International, who are Sonatrach’s partner, is pressing ahead with its development with Petrofac as the EPC contractor and local companies supplying construction and drilling contractors for this extensive field development.
Angelo Moskov, Chairman of Petroceltic said, “Ain Tsila has huge potential and its development will bring major benefits to Algeria and its people. It is a project that has been delayed for too long. All of us have a responsibility to ensure that we work together to deliver on time and within budget.”
