Algeria's national hydrocarbon company Sonatrach plans to increase its daily natural gas production to 24 million cubic meters (mcm) from 16 mcm with the help of new investment on the country's border with Libya, the company announced Tuesday.
Abdelmoumen Ould Kaddour, CEO of Sonatrach, conducted research and development studies for the Er-Rar gas field located next to the Libyan border in southeast Algeria.
The company invested 64 billion dinars (US$540 million) for the development of the gas field, according to Kaddour.
British oilfield services company Petrofac and Italian pipeline contractor Bonatti together with Sonatrach have made investment and development plans for the gas field over the past six years, according to Kaddour.
Algeria exported 55 billion cubic meters (bcm) of natural gas in 2017 out of total production of 135 bcm, the company announced. It exports natural gas to Europe from three different pipelines.
Sonatrach announced recently that the company plans to terminate their long-term gas agreements and aims to implement five-year short-term agreements in the future.
Reporting by Abdel Razek Abdallah & Hamdi Yildiz in Algeria
Writing by Oyku Zumrutdal & Ebru Sengul
Anadolu Agency
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