Algiers, February 29 (QNA) - CEO of the Algerian energy company Sonatrach Rachid Hachichi revealed that his company has allocated investments worth USD 8.8 billion, during the current year from the total Algerian investment portfolio worth USD50 billion, for four years until 2028.

71 percent of the total investment value is devoted to gas exploration and production, 18 percent for refining and petrochemical sector, 5 percent for liquefaction and separation sector, and finally 4 percent for the pipeline transportation sector.

Speaking to Qatar News Agency (QNA), Hachichi said the pipeline gas exports to Europe reached 35 billion cubic meters during 2023, adding that he is determined to upgrade the potential in gas sector to provide additional quantities of gas in the national and global markets, particularly in Europe.

By virtue of the efforts made to upgrade the production capacities, a plan is being set to supply the market with over 110 billion cubic meters of gas over the next five years, Hachichi outlined, adding that Algeria possesses massive capabilities in Liquefied Natural Gas (LNG) production reaching 56 million cubic meters, allowing it to supply customers in the Mediterranean Basin, Western and Northern Europe and Asia.

He pointed out that supplying those entities with LNG hinges on the operational and commercial conditions available, since Sonatrach primarily counts on a giant fleet of 7 LNG carriers.

He added that Sonatrach possesses a significant production capacity estimated at 136 billion cubic meters annually from primary natural gas, in addition to 29 million cubic meters annually from LNG, and 9.4 million tons annually from liquefied petroleum gas (LPG), while the production capacity of condensed gas is 8.3 million tons annually.

Hachichi underscored that Sonatrach draws on manufacturing industry to optimize value fuels and has updated its project portfolio and strategy to carry out projects, and ultimately accomplish the intended objectives through a group of projects, primarily the ethylene complex at Skikda ethylene plant eastern Algeria and Alkyl Benzene (LAB) Plant.

Commenting on the competition among gas producing countries with regard to the European market, CEO of Sonatrach said natural gas market has been largely globalized, adding that this trend is primarily focused on LNG, since the structural change in gas market normally increases competition among the producing countries with respect to European markets that play pivotal role, he said, because those markets strike the balance between US and Asian markets.

Regarding the 7th Gas Exporting Countries Forum (GECF) Summit hosted by Algeria, Hachichi affirmed that gas will be the key source of energy transition in the upcoming period, adding that he advocates for this orientation.

In conclusion, Rachid Hachichi affirmed that Sonatrach has taken measures to reduce emissions and burning gas in pursuit of reducing the carbon footprint in the gas industry, affirming that the company has set a fixed threshold for carbon footprint. He indicated that the two primary sources of greenhouse gas emissions can be summarized in gas burning constituting the majority of carbon dioxide (CO2) emissions and gases that are routinely burned. He outlined that to achieve its goals in the medium term, Sonatrach has set a balanced action plan accordingly. (QNA)