The President of the Republic of Algeria, Mr Houari Boumedienne on Tuesday (21 February) inaugurated a natural gas liquefaction plant at Arzew, 250 miles (400 kilometres) west of Algiers.
The President of the Republic of Algeria, Mr Houari Boumedienne on Tuesday (21 February) inaugurated a natural gas liquefaction plant at Arzew, 250 miles (400 kilometres) west of Algiers. The plant will supply exports to the United states and Western Europe.
SYNOPSIS: The plant is one of six built at Arxew to exploit the huge reserves of gas which lie deep beneath the Sahara Desert.
President Boumedienne cut the tape to launch a project that is vital to Algeria's future prosperity. Although almost three years behind schedule, this plant will soon start to Supply liquified gas to the United States and Europe through a series of contracts signed over the last eight years.
Algeria possesses 12 per cent of the world's known reserves of natural gas, but exploitation of these has proved difficult. It decided international sales of liquid gas were the answer. A prototype plant began production in 1964, selling to Europe. Now the biggest potential customer is the United States and it is to this market that the bulk of the gas processed at Arzew is destined.
Algerian experts estimate that the country will be exporting 70 billion cubic metres (3,450 billion cubic feet) of gas each year during the next decade.
As production begins the tanker El Paso Sonatrach will soon sail for the United States with the first delivery on a 25 year contract to supply 10 billion cubic metres annually.