Salah Khebri: “Sirghaz” To Become Compulsory For Ministries’ Vehicles!

Energy Minister Salah Khebri has announced that new stringent measures will be adopted by the state to lessen national fuel consumption, which now costs a lot to the Public Treasury in terms of expenditures in light of the current world oil crisis with its adverse repercussions on Algeria’s hydrocarbons revenues.

The Minster also said that the use of diesel and petrol will be forbidden to public and official institutions including for the vehicles used by the various ministries which will have to opt gradually for the “Sirghaz” or “LPG” technique on board these vehicles as part of an overall energy rationalization action plan, while not ruling out new price increases of electricity affecting national industrial enterprises and manufacturers.

Furthermore, the Energy minister assured that “investments in the sector of energy will be pursued despite the severe drop in oil prices and the country’s dwindling financial revenues.”

Even in case of lack of financial resources to achieve these investments, the national hydrocarbon company SONATRACH would have two alternatives, he said.

The national company, which has no external debt to date, could resort to external debt like leading oil companies, or partnership,” Mr Khebri explained.

In this regard, the minister underlined that partnership represents only 4% of SONATRACH’s investments in the mining field.

“We have no other choice, we must increase our production capacities to ensure long-term energy independence given the growing domestic energy demand,” he said.

The country’s energy consumption increased from 30 million tonnes oil equivalent (TOE) in 2000 up to 58 million TEP in 2015, he explained.

A fifth international invitations to tender will be launched for hydrocarbon exploration and production, announced Mr Khebri.

In order to meet its growing needs, Algeria has adopted a strategy for the diversification of its energy resources.

“Electricity in Algeria is produced only from natural gas, and the country can save up 300 billion cubic metres of natural gas by 2030, through energy diversification. These resources would be used in processing industry,” said the minister.

A national and international invitation to bid will be launched soon by the Ministry for the achievement of the project, he added.

Algeria also intends to produce electricity from nuclear energy by the year 2030, he said.

As regards the country’s gas policy, the energy minister underlined that it is based on the increase of production and the preservation of the market share of Algeria’s exports.