Algeria signs oil and gas deal

Algeria signs oil and gas deal

Algeria, Africa’s largest natural gas producer has signed a memorandum of understanding today to supply oil and other energy products to Jordan for the first time.

The OPEC (Organisation of Petroleum Exporting Countries) member looks to expand sales after inactive crude production. The country’s state-run Sonatrach Group will begin transporting liquefied natural gas and liquefied petroleum gas to Jordan in September, with crude oil following later, said Algerian energy minister Salah Khebri.

“This is the first time that we are going to get fuel and gas from Algeria,” said Hasan Hiari, head of the natural gas department at Jordan’s ministry of energy & mineral resources. “We are keen on diversifying our energy sources.

The country has invited international companies to help develop its oil and gas fields since Sonatrach’s difficulties on raising production after a corruption probe at the company and terrorist attacks at the In Amenas gas field in 2013.

Algeria, the ninth-largest member of OPEC plans to increase crude output by five per cent in 2016 and provide energy-exploration rights to foreign companies.

Jordan is also looking at solar, wind and nuclear power for the future since it has almost no energy resources.

Prime Minister Abdullah Ensour said 48 per cent of Jordan’s electricity will be produced by nuclear reactors by 2025, up from four per cent today. The country plans to have 500MW of solar and wind power operational by the end of 2016.

@RGNOnline