Algeria Looks to Begin Production at Reggane

Algeria Looks to Begin Production at Reggane
FILE – This Sunday, Dec. 14, 2008 file picture shows the Krechba gas plant on the In Salah gas field in Algeria’s Sahara Desert, some 1,200 kilometers (720 miles) south of the capital, Algiers, Algeria. An Algerian local official said unidentified assailants fired homemade rocket launchers around 6 am at the Krechba gas facility, jointly operated with foreign companies and overseen by Algerian state-run gas company Sonatrach. (AP Photo/Alfred de Montesquiou, File)

Sonatrach plans to bring online a $1 billion natural gas project at the Reggane natural gas field this year, Sonatrach officials told Reuters.

Upon completion, the field should produce up to 8 million cubic meters per year, according to Reuters.

Algeria is seeking to develop its natural gas resources in the face budgetary challenges caused by lower oil prices.

“This project has a three month delay, much better than Touat with an 11 month delay, the CEO of Sonatrach, Abdelmoumen Ould Kaddour, said, according to Reuters.

Touat is another natural gas field in Algeria. The Reggane field was supposed to come online in June and the Touat field in February 2017, according to Reuters.

Ould Kaddour has called for increased natural gas production from the Roude El Baguel and Hassi Massaoud oildfields. This fall, KBR won a contract for engineering and management at two additional gas fields: In Amenas and In Salah.

In order to encourage foreign investments in its oil and gas industry, the Algerian government has announced plans to reform its energy laws. The government plans to eliminate red-tape and craft tax incentives as part of its regulatory overhaul, Reuters previously reported.

The Reggane field is located in central Algeria.

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