Algeria a Major Gas Producer, But Struggles to Meet Domestic Electricity Demand
From ESI Africa
Algeria‘s role as a gas-producer made the headlines in early 2013 when militants attacked a gas site in the desert, near the border with Libya. The attack, and highly controversial response by the Algerian government, left many dead, reminding oil and gas firms of the risks associated with the country. Firms have to attempt to strike a balance between these risks, and the considerable opportunities presented in a nation with significant natural resources. In April 2013, Spain’s Repsol was the latest firm to announce a natural gas discovery in the country.
In terms of electricity consumption, domestic capacity, which is practically entirely from thermal sources, struggles to meet demand, and as such, the government has launched several tenders in a plan to boost electricity generating capacity by 2016. But it is unclear who will be keen to invest. National laws inhibit international investment, and require firms to have a majority Algerian partner; this limits opportunities in the country. Spain has been the latest country to request that this restriction be lifted.
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