Slump in LNG sales cost Algeria a loss of 3.2 billion dollars in 2009

The Algerian liquefied natural gas sales recorded a marked slump in 2009 down to 54.5 billion cubic meters owing to the fierce competition currently challenging the Algerian gas deliveries on the traditional markets around the world.  

• This steep decline in Algerian gas exports was also due to the delay recorded in the coming into service of a number of gas fields located in southern Algeria.
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• According to sources from the energy and mines ministry, the country’s targeted objective to reach an output of 85 billion cubic meters by 2012 will be rather impossible to attain on account of the negative evolution of the world gas market badly hit by the global recession fallouts.
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• The same sources said that the Algerian natural gas exports had slumped by 15% compared to the objectives set for this purpose for the year 2009.
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• This slump in Algeria’s natural gas exports cost the country a significant lost in revenues estimated at 3.2 billion dollars.
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• This financial package due to several untoward factors could have been gained under more favourable market conditions.
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• The global economic meltdown in the world has brought the natural gas consumer countries notably in Europe to scale down their gas imports in 2009 notably from Algeria, in addition to the crumbling of LNG prices on the so-called “free market” where competition is harsh and fierce.
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• The Algerian LNG exports also decreased owing to the unexpected delay in the achievement on time of the major Gassi Touil project which could have boosted the country’s natural gas deliveries to several European countries notably to France, Spain, Italy, Portugal and Belgium if it came into service as planned in the year 2009.